Maximum Adverse Excursion

What it means

Maximum adverse excursion helps traders study how far a trade typically goes against them before working or failing.

What to watch

It is useful for stop design, but it should be grounded in enough real trades to avoid overfitting the risk model.

Where traders usually run into this

Maximum Adverse Excursion is most useful once it is tied to a concrete page, chart decision, or workflow question.

• Maximum Favorable Excursion keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Drawdown keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Position Sizing keeps this term attached to a real glossary instead of leaving it as standalone jargon.

Best next page if this term is blocking you

If you understand the definition but still do not know what to do with it, start with Maximum Favorable Excursion. That page is the fastest way to see how maximum adverse excursion shows up in a real glossary workflow.