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Glossary
Equity curve
An equity curve is a chart of your account balance over time, plotted trade by trade. Its shape reveals the character of your trading at a glance: steady stair-steps suggest consistency, jagged spikes suggest oversized bets, and long flat or falling stretches expose periods where the edge disappeared. It is the fastest visual health-check a trader has.
Professionals read equity curves the way doctors read heart monitors. The slope shows profitability, but the smoothness shows risk control — and smoothness is what determines whether a strategy is psychologically and financially survivable.
Journal software builds the curve automatically from imported trades, which removes the temptation to only chart the good months.
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