WAIT FOR DIPSDON'T CHASE LOCKSCHECK THE LEADERWATCH MARKET HOURSSMALL SIZE FIRSTYOU CAN TAKE PROFITDON'T FORCE A TRADECHECK THE CHARTWAIT FOR CONFIRMATIONSKIP CHOPPY ROUNDSPRICE MATTERS TOONO SIGNAL = WAITLEADERS CAN CHANGEDON'T TRADE EVERY ROUNDLOSING STREAK? STOPNEVER CHASE LOSSESNOT EVERY CALL WINS
Paper Signal LabLearning
Practice

MAE — maximum adverse excursion

The worst movement against a simulated position before it closes.

What to notice

For a paper long, MAE tracks the lowest price reached after entry relative to entry. For a paper short, it tracks the highest.

The context that matters

MAE can reveal whether entries tended to be early or whether a setup routinely tested an invalidation zone first.

Common mistake

Treating MAE as an actual loss. It is a path statistic; the paper position may have exited elsewhere.

Try it on a chart

Compare MAE for ten paper trades with the invalidation levels you wrote before entry.

Open Paper Signal Lab

Paper Signal Lab provides educational chart analysis and simulated research. Patterns and historical paper outcomes do not guarantee future market results. Public research does not grant real-money trading access.