WickCheck / Trading school / Equity curve
Equity curveBeginner
Your account balance plotted trade by trade.
What it means
A smooth rising curve with shallow dips is easier to trade than a jagged one with the same final profit. The shape tells you about drawdowns and streaks.
How to spot it
- Balance after each closed trade.
Common mistakes
- Judging a strategy only by the end point.
Related terms
DrawdownThe fall from an account's peak to its lowest point before a new peak. Max drawd…Monte Carlo testReshuffling your backtest trades many times to see the range of possible equity …Profit factorGross profit divided by gross loss. Above 1 made money, below 1 lost money.…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.