MAE and MFE in trade analysis: how to test whether a stop loss is too tight
MAE and MFE in trading: separate price movement up to exit, compare trades and test a stop hypothesis on a different dataset.
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Trading Strategies and Systems
Practical articles about developing, testing and systematizing trading strategies. The topic covers entry and exit rules, market structure, risk-to-reward, backtesting, expectancy, adapting strategies to different market conditions and building disciplined trading systems.
Why a Stop Loss Executes at a Different Price: Slippage and Order Execution Risk
Learn why a stop-loss price is not guaranteed and how to account for slippage, liquidity and order type in your risk plan.
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Backtesting and forward testing: how to validate a trading strategy before using real capital
A practical framework for validating a trading strategy with historical data, out-of-sample tests, walk-forward analysis, paper trading and small live risk.
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