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

MFE — maximum favorable excursion

The best movement in favor of a simulated position before it closes.

What to notice

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

The context that matters

Compare MFE with the actual simulated exit to understand how much favorable movement was captured.

Common mistake

Assuming the extreme price could have been filled exactly; the statistic is descriptive, not an executable result.

Try it on a chart

Review five paper trades and compare MFE with each exit and the reason for exiting.

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.