Equity Curve

The value of a trading account graphed over a period of time. An Equity-curve gives a visual performance measure of a trading system. The Equity-curve in the TJS product calculates the Net Cumulative P&L figures.

It is the goal of every professional trader to have a steadily rising equity curve, flowing from the lower left to the upper right, with only occasional shallow drawdowns – – When starting out, your curve will most likely look very jagged until you have a good amount of data recorded.

equity-curve

Posted in: Trading Terminology (general product terms)