Equity curve

Why it matters

The shape matters more than the endpoint. Smooth curves survive size increases; jagged curves usually hide one outsized day.

Example

A curve that climbs steadily then steps down sharply once a month usually means one oversized trade per month is undoing a month of discipline.

How to track it in a journal

TradeStack calculates the core performance numbers — win rate, average win and loss, profit factor, expectancy, drawdown and consistency — automatically from imported trades, so equity curve stops being something you estimate and becomes something you read.

Related terms

Questions that use this term

• What is the difference between trailing and static drawdown?
• How do you read a trading equity curve?

Keep reading