One of the best performance indicators actually isn’t a metric, but a graph – the equity curve. As the old saying goes “A picture is worth 1000 words”. You can easily understand the type of the system and if it is worth trading by a quick glance at the equity curve.
Topics overview:
- How to use the equity curve when you evaluate trading systems?
- Learn what are the basic equity curve shapes and what do they tell you.
- What is the difference between an equity curve and a balance curve?
- Learn why it is important to know the difference between an equity curve and a balance curve.
- How to use the equity curve to analyze trading system performance?
- Learn how to read the different shapes of equity curves to understand important characteristics of your trading systems performance.
