What is Maximum Favorable Excursion?

The largest unrealized profit during a trade before it was closed. MFE analysis helps optimize take profit levels. If your trades consistently reach 1.5R before you close at 1R, you're leaving money o

Maximum Favorable Excursion in Prop Firm Trading

The largest unrealized profit during a trade before it was closed. MFE analysis helps optimize take profit levels. If your trades consistently reach 1.5R before you close at 1R, you're leaving money on the table. Conversely, if MFE rarely exceeds 1R, targeting 2R will lower your win rate.

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