Angle
Most traders don't track Maximum Favorable Excursion. They should.
Key Points
- What MFE is and why it matters
- MFE Retracement logic: "If it gives back X% of its best run, exit"
- Prevents giving back open profits
- Comparison to fixed targets and breakeven stops
Outline
- **MFE defined** — the best unrealized profit a trade achieves
- **The tragedy of roundtrips** — watching winners dissolve
- **MFE Retracement mechanics** — set a threshold, exit on violation
- **Example trade** — $5 unrealized peak, 20% retracement threshold, exit at $4
- **Comparison:** MFE vs. breakeven stop vs. fixed target
- **Psychological benefit:** no "should I or shouldn't I?" moments
Repurpose Plan
- **Newsletter:** Deep-dive with annotated chart
- **LinkedIn:** "The number most traders ignore"