The Equity Curve

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.

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