Equity Curve
An equity curve is a graphical representation of the growth or decline of a trading account over time. It plots cumulative P&L against time, giving a visual representation of strategy performance and drawdown periods.
Why it matters for traders
The equity curve tells the story of a trading strategy — rising consistently indicates a robust edge; large drawdowns and recoveries indicate volatility; a declining equity curve indicates loss of edge or strategy drift.
How Tradapt tracks this
Tradapt's Analytics section shows your equity curve over any selected time period. The AI Coach analyses your equity curve trend and flags periods of edge deterioration.
Track this free in TradaptFrequently asked questions
What does a healthy equity curve look like?
A healthy equity curve rises consistently with small drawdowns and no extended flat periods. Large drawdowns or extended flat periods suggest the strategy is encountering unfavourable conditions or the edge has deteriorated.