maximum excursion analysis

Definition

Forex

  • An analytical method originally developed by John Sweeney that helps assess how well a trading system takes advantage of opportunities it identifies. The typical technical analyst using maximum excursion analysis will plot a scatter diagram after computing the maximum favorable excursion (MFE) and the maximum adverse excursion (MAE) from each trade's realized profit or loss compared to its maximum unrealized profit or loss.
http://www.dictionarycentral.com/definition/maximum-excursion-analysis.html