What is Equity Curve?
An equity curve is a line showing how an account balance changes trade by trade over time. A smooth, steadily rising curve suggests consistency, while a jagged one with deep dips suggests rough periods. Reading the shape of the curve, including its worst drops, tells you more than the final number alone.
Why Equity Curve matters
The shape of the ride matters: two strategies can end at the same point but be very different to hold.
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