A powerful new tool for dramatically lessening trading risks Nearly every successful trader has an intuitive "sixth sense" that alerts him or her to a transaction's loss point, the negative amount that the trade might incur. But what happens when intuition fails? Maximum Adverse Excursion (MAE) replaces emotionally-biased guesswork with statistical calculations that enable traders to quantitatively define the loss point. Using MAE, they can pinpoint the amount of any potential loss before they implement their trading decisions, thus avoiding nasty surprises. Here, the inventor of MAE provides all the tools and guidance-including computer programs- traders need to create personalized charts that measure market behavior, determine the specific capital requirements for every trade, and help better manage day-to-day investment risks. JOHN SWEENEY (Seattle, Washington) is the Technical Editor of Technical Analysis of Stocks & Commodities magazine. In addition to being a trader, he is also the author of Campaign Trading (Wiley).
JOHN SWEENEY is former Vice President, Diversification, Seafirst Banking Corporation, a Northwest bank holding company. A trader himself, he is the Technical Editor of Technical Analysis of Stocks & Commodities magazine.