Equity Curve
Analytics
Equity curve is the chart of account balance over time. Smoothness matters as much as slope.
An equity curve is the chart of account equity over time. Prop firms scrutinize equity curves at payout — a curve with consistent gains and shallow drawdowns suggests skill; a curve dominated by one large day suggests luck and may trigger consistency-rule scrutiny.
For traders, monitoring the equity curve''s slope, depth of pullbacks, and time-to-recovery is one of the most useful diagnostics for whether a strategy is performing as expected.
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