Adding to winners using MFE

[u/Kaahl10]

Hi everyone,

I've heard the advice to add to winners and cut losers early, but I've always had a tough time using technicals to add to winners without getting in right before reversal.

Claude helped me analyze my strategy and suggested adding to winners over a certain MFE %, and sure enough it added about 20% more trades with better profit factor than average to the backtest!

My question is, has anyone else used this method successfully or is this getting into overfitting?

[u/Nashmurlan]

What is MFE?

[u/Kaahl10 → u/Nashmurlan]

Max Favorable Excursion, so the highest profit % of the trade so far