Maximum adverse excursion (MAE)
The deepest a trade went against you before it closed.
How to read it
Winners' MAE says how much room a stop needs to leave them; its opposite, MFE, is the best a trade ever looked.
How to use it
Set stops from evidence: wide enough to have kept the winners, tight enough to cut the losers.
In Kereon
Strategies. The suggested stop is the 90th percentile of the winning trades' MAE: wide enough to have kept nine winners in ten.
Also called: worst point, average worst point, median worst point, mae, suggested stop.