ARTICLE SYNOPSIS ...The Maximum Favorable Excursion Strategy by David C. Stendahl and Leo J. Zamansky Maximum favorable excursion (MFE) is the peak profit that a trade earns before the trade is closed out. Reviewing the performance of a trading system allows us to measure the tendency of the MFE of the trades. This article explains how to use the information to enhance profitability. Maximum favorable excursion (MFE), a concept originally created by John Sweeney to mea-sure the distinctive characteristics of profitable trades, can be used as part of an analytical process to enable traders to distinguish betwee...