How Professional Traders Use MFE & MAE to Improve Forex Backtesting @JasonGraystone
How Professional Traders Use MFE & MAE to Improve Forex Backtesting  @JasonGraystone
Uploaded January 2026 | Updated September 2026, 2 weeks ago
Get a copy of the template spreadsheet here:
👉 training.tieronetrading.com/mae-mfe-spreadsheet

Most rookie traders think backtesting is about entries, stops, and indicators.

Professional traders focus on Maximum Favourable Excursion (MFE) and Maximum Adverse Excursion (MAE), because these two metrics tell you exactly:

How much profit the market actually offers
How much drawdown the market actually demands

In this video, I break down MFE and MAE in the simplest possible way, using real examples and practical Forex applications.

You’ll learn how professionals use MFE & MAE during backtesting to tighten stops, improve exits, reduce risk, and dramatically increase expectancy — without changing their strategy.


In this video, you’ll learn:

What MFE and MAE really mean in trading

Why most traders backtest incorrectly (and stay stuck)

How to measure MFE & MAE on any Forex chart

How professionals use R-multiples to analyse trades objectively

How MAE data helps tighten stops safely

How MFE data helps you stop leaving money on the table

How to backtest like a professional, not a hobbyist

I’ve also linked the MFE & MAE backtesting spreadsheet below so you can start applying this immediately.

If you want to stop guessing, stop over-risking, and start building a data-driven trading system, this video will change how you look at backtesting forever.

👇
Comment “Tier One Trading” if you want a follow-up video showing how to dial this in even further using our advanced spreadsheets.

👇 Join the community & go deeper:

• Tier One Trading (members get full breakdowns)

🔗 RESOURCES

Trade Nation Broker: bit.ly/tn-beginner

📊 Get Access to the Tier One Trading Community → tieronetrading.com

🎓 Join the 30 Day Trader Challenge → bit.ly/30-day-trader

Watch the Backtesting for Beginners video: youtu.be/zEmdg6opAxc

Trailing Stops Video: youtu.be/_7F-BotvGGI

Trading for Beginners → bit.ly/4bQatq3

📘 Forecaster → bit.ly/4keYQ16

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Timestamps:

00:00 Why Most Traders Leave Money on the Table
00:21 What Separates Profitable Traders from Stuck Traders
00:48 Simple Example Explaining MFE & MAE
01:16 What Maximum Favorable Excursion (MFE) Really Means
01:39 What Maximum Adverse Excursion (MAE) Really Means
02:03 Why Most Traders Backtest Wrong
02:28 Where the Real Trading Edge Lives
02:46 How MAE Tightens Stops & MFE Improves Exits
03:04 Measuring MFE & MAE on a Forex Chart
03:28 Logging Trades the Professional Way
03:45 Using R Multiples to Compare Trades Objectively
04:34 How Much Heat Do Winning Trades Actually Need?
04:57 Tightening Stops Without Reducing Performance
05:26 How MFE Reveals Profit Being Left on the Table
05:49 Designing Better Exits Using MFE Data
06:10 When Traders Cross from Amateur to Professional
06:32 Backtesting Sample Size Warnings
06:58 Accounting for Spreads & Execution in Forex
07:17 Final Summary: Stop Guessing, Start Engineering
07:38 Spreadsheet Link & Next Steps


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📸 Instagram @j_graystone / j_graystone
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✒️ Disclaimer:
No part of this video or any of the content in it is legal or financial advice.
Results from what Jason Graystone teaches may not be typical nor expected for every person. Jason is a professional investor and currency trader. This is not a “get rich quick” scheme. Your results may be better, worse, or the same as Jason’s.
All information provided on this website is based on best practices and for educational purposes only.

Jasongraystone.com (JG) is an online educational website only. Information contained throughout the site/video may be provided by sources that are not affiliated with JG.
By accessing this information, you acknowledge your understanding and consent to the foregoing and shall not hold JG liable.
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How Professional Traders Use MFE & MAE to Improve Forex Backtesting

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