Glossary

What is Equity curve

The running result trade by trade — in R or in money. Its slope is the expectancy, its dips are the drawdowns.

How it works

Example

The model sample's curve ends at −13.3R after 88 trades: it slopes down — the expectancy is negative.

Common mistake

Plotting the curve in money while risk changes: the slope reflects bet size, not decision quality.

Read next

Frequently asked questions

Where can I learn Equity curve step by step?
In the Trading OS Academy: “Model stats without distortion”.
What is Equity curve related to?
Drawdown; Expectancy; R — result in units of risk.

Plan versus outcome — for every trade

The Trading OS journal keeps the planned RR and the actual R of each trade side by side and computes expectancy from real results.

No sign-up — the journal runs in your browser; an account is only needed for sync.

Open the journal