Getting Started
Broker Connections
Platform Features
- Command Center
- Replay Room
- Alpha Engine
- Insights
- Risk Desk
- Prop Desk
- Journal
- Playbook
- Reports
- Hub
Intelligence Engine
Core Platform
Networking
Alpha Engine
Are you lucky or are you good? The Alpha Engine breaks down your P&L into skill (Alpha) and market exposure (Beta). It uses granular execution data to measure exactly how much money you leave on the table.
Exit Efficiency
Calculates how much of the move you captured. Did you sell the exact top (100%) or panic sell early (20%)?
Entry Precision
Measures "Heat". Did the trade go against you immediately (Poor Entry) or work instantly (Sniper Entry)?
Alpha Engine: The Complete User Guide
The Alpha Engine (Execution Analysis) is the most advanced diagnostic tool in OpenTrades. It ignores what you traded and focuses entirely on how you traded it. By analyzing the "Max Favorable Excursion" (Peak Profit) and "Max Adverse Excursion" (Peak Drawdown) of every single ticket, we assign a "Skill Score" to your trading.
1. Core Concepts (MFE & MAE)
To understand the data, you must understand the two fundamental metrics of execution science.
MFE (Max Favorable Excursion)
"How much did the trade go in my favor?"
This is the highest potential profit you could have realized while the position was open.
MAE (Max Adverse Excursion)
"How much heat did I take?"
This is the maximum drawdown the trade suffered before you closed it.
2. Alpha Coefficients (Scoring)
The engine calculates three scores to grade your performance.
High score means you are "sniping" entries. The price moves in your favor immediately with little MAE (drawdown).
High score means you are selling the top. Low score means you are leaving money on the table (High MFE, Low Realized PnL).
A composite grade combining your entry precision, exit capture, and risk/reward ratio.
3. MFE vs MAE Scatter Plot
The central visualization of the Alpha Engine. Every dot is a trade.
- X-Axis (Pain): Max Adverse Excursion (MAE). The further right a dot is, the more drawdown you endured.
- Y-Axis (Gain): Max Favorable Excursion (MFE). The higher a dot is, the more profit potential the trade had.
- The Goal: You want trades in the Top-Left Quadrant (High MFE, Low MAE). This indicates you endured very little pain for a lot of gain.
4. Trade Diagnostics Table
Below the chart, the "Trade Tape" breaks down the raw data for every execution.
| Column | Interpretation |
|---|---|
| MFE ($) | The highest dollar amount you were up. Compare this to your "Realized PnL". If MFE is $500 but Realized is $100, you have an exit problem. |
| MAE ($) | The lowest dollar amount you were down. If this is consistently high on winning trades, your stops are too loose or your entries are late. |
| Efficiency | A percentage grade (0-100%). calculated as: (Realized PnL / MFE). A score of 90%+ means you captured almost the entire move. |