Click to view my Maximum Adverse Excursion video.  

The Maximum Adverse Excursion or MAE is a measure of how far a trade went against you.   Read this previous post for a definition.   BackTesting Reports measures MAE across thousands of trades, allowing you to use it as a metric to assess and compare trading strategies.

Of course the idea is to pick a strategy with a low Maximum Adverse Excursion.   You can also reduce the MAE (and risk) of a strategy by using a stop loss.

Tags: MAE, risk, stop, strategy

If you’ve ever wondered:

• which MACD sell signal has the best track record
• whether to sell when the MACD Histogram ticks down or wait for the lines to cross
• how far positions have dropped after a MACD by signal
• whether stop losses really reduce risk
• whether using an ATR stop is worth the effort

then you might considering investing in a copy of the MACD Sell Signals BackTesting Report.

The MACD Sell Signal Report builds on two of the MACD Buy Signals to backtest basic exit signals using MACD lines and histograms. This report gives the first look at Maximum Adverse Excursion – how far the position went against you — as a way to measure the risk of each strategy.   It also compares three different types of stop losses to reduce risk.   Read this report to find out how you would have fared by following the MACD and MACD Histogram.

 Subscribe to BackTesting Report Now or order MACD Reports separately

Tags: ATR, backtesting, exit, linkedin, MACD, MACD Histogram, MAE, Maximum Adverse Excursion, risk, selling, stop