Average MFE (best moment)

The formula

Maximum Favorable Excursion: the peak unrealized gain a trade reached before closing, averaged over your trades.

How to read it

How far the market went in your favor. An MFE well above your actual gain = you exit too early.

Average MFE is read against average win, and the gap between them has a name: money left on the table. An MFE consistently far above the realised gain does not say you exit badly, it says your target is misplaced or that you move it under pressure.

The classic mistake

Trying to capture the whole MFE. A trade's peak only exists in hindsight: aiming for the top turns winners into losers, because price rarely returns there twice. MFE is there to set a realistic target, not to regret.