MFE/MAE Duration
The exact time elapsed between your trade entry and when Maximum Favorable Excursion (peak profit) or Maximum Adverse Excursion (worst drawdown) occurred.
Formula
More Details
What is MFE/MAE Duration?
Most exit analysis focuses on price. But time matters just as much.
MFE Duration tells you exactly how much time elapsed between your entry and the moment your trade hit peak profitability (MFE). MAE Duration tells you how long it took for the worst drawdown to occur. TradesViz tracks this using the highest-granularity data available for each asset type.
Learn more: MFE/MAE Duration Analysis | Trade Exit Strategy: The Complete Guide
Why Time Matters
A trade that moves sideways for 3 hours is trapping your capital, incurring opportunity cost, and taxing your mental energy. If your data shows that winning setups typically hit peak profitability within 2-3 minutes, then holding those positions for 2 hours is exposing capital to reversion risk for no reason.
This is the data that enables time-stops, an institutional concept that almost nobody in retail trading talks about.
How to Read MFE Duration Data
| Pattern | What It Means |
|---|---|
| MFE Duration clusters at 2-5 min | Your setups peak quickly. Consider faster exits or time-stops. |
| MFE Duration spread across 30-120 min | Your setups need time to develop. Don't scalp them. |
| MAE Duration peaks early (first 5 min) | If a trade is going to go against you, it happens fast. Cut quickly. |
| MAE Duration spread evenly | No clear timing pattern on drawdowns. Focus on price-based stops. |
Practical Applications
Implementing Time-Stops
If your data consistently shows MFE Duration peaking at ~20 minutes for a specific setup, you can implement a time-stop: close the position after 25 minutes if it hasn't hit its target. The statistical window for profitability has expired.
Identifying Capital Traps
Long MFE Duration with small MFE = your capital was locked up for a long time chasing a small move. These trades might not be worth taking even if profitable.
Setup-Specific Timing
Different setups have different MFE Duration profiles. Breakout trades might peak in minutes. Mean-reversion trades might take hours. Knowing this prevents you from applying the wrong exit timing to the wrong setup.
Charts Available
TradesViz shows MFE/MAE Duration as scatter plots:
- MFE Duration vs PnL
- MFE Duration vs Volume
- MFE Duration vs Time of Day
- MAE Duration vs PnL
All available under Performance Metrics in your dashboard.
Learn more: MFE/MAE Duration Analysis | MFE/MAE Charts Guide
Where to find it in TradesViz
Example
Winning trades hit peak profit (MFE) within 2-3 minutes on average. Holding for 2 hours after that exposes capital to reversion risk. Implementing a 25-minute time-stop based on this data improved exit efficiency.