Mason R_ Perez

翻訳の表示

What is equity curve analysis in forex?

Equity curve analysis examines the growth of account equity over time, showing profits, losses, and drawdowns. A smooth, upward-sloping equity curve suggests consistent performance, while erratic curves indicate instability. Traders analyze curves to identify strategy weaknesses, periods of underperformance, or excessive risk-taking. Equity curve correlation across multiple strategies also helps assess diversification benefits. For automated systems, equity curve analysis is vital in determining whether a strategy remains reliable or requires adjustments. A healthy equity curve emphasizes risk control as much as profitability.