Exit efficiency

The formula

Gain actually banked ÷ gain available at the best moment (sum of positive MFE), in %.

How to read it

The share of the favorable move you capture. 60% = you leave 40% of the potential to the market.

Between 50 and 70%, you exit properly: nobody catches the top. Below 30%, your exit is the thing to work on before anything else, even before your entry. Above 85%, be suspicious: that is not precision, it is almost always the sign of targets so close they miss the real moves.

The classic mistake

Computing it on losers. On a trade closed at a loss, MFE can be near zero and the ratio loses mathematical meaning. Exit efficiency is only read on winners.