Is the formula for the Maximum Adverse Excursion for a Short Selling Trade the (Open - High) / Open, or (High - Open) / Open ?
Modified 1 year, 8 months ago
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$\begingroup$ The MAE is a kind of potential loss or drawdown that is usually shown as positive. I.e. 5 means you could have lost 5 dollars. So on a shortsale, if done in percentage terms, it would be (high-open)/open and on a buy (open-low)/open. $\endgroup$– nbbo2Jul 18, 2021 at 1:56
$\begingroup$ @noob2 , great !, thanks for that. On the shortsale side, formula for this is not displayed much out there. $\endgroup$– CalculateJul 19, 2021 at 1:10
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