Trade management: reconcile exits, exposure and time

Calculate partial-exit R, cost-adjusted break-even, observed MFE and MAE, add-on risk and time stops using complete hypothetical trading ledgers.

Course outline

1. 1

   Calculate realized R after partial profit taking

   Weight each actual exit by its share of the original position, deduct every fee and keep the original risk denominator. A touched target is not the whole trade result.

   8 min
2. 2

   Calculate break-even after a partial exit

   Separate an entry-price stop, the remaining position’s break-even and whole-trade break-even. Include prior partial profits, paid fees and exit-notional costs.

   9 min
3. 3

   Measure MFE and MAE without inventing realized profit

   Calculate sampled favorable and adverse excursions from a declared price and depth series, then reconcile them with the actual filled exit and net result.

   8 min
4. 4

   Recalculate average entry and risk before adding to a position

   Size an addition from the combined position’s planned stop loss and all fees. Reconcile the new average entry without spending the same risk budget twice.

   9 min
5. 5

   Define a time stop and signal expiry before entering

   Separate signal expiry, maximum holding time and order time in force. Reconcile the actual timed exit, execution delay and costs under a fixed rule.

   8 min

Open full-size diagram

1. Calculate realized R after partial profit taking
2. Calculate break-even after a partial exit
3. Measure MFE and MAE without inventing realized profit
4. Recalculate average entry and risk before adding to a position
5. Define a time stop and signal expiry before entering

Educational material. Examples do not establish a profitable strategy. Trading costs, gaps and liquidation can produce losses beyond a planned stop.