E-line ELI-PRO3 series Guida Utente Pagina 48

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Equity Curve
The equity curve shows the change in your total equity over the simulation period. Most trades
are looking for a smooth, upward sloping equity curve. Often times just glancing at the equity
curve can identify problem areas that might not be obvious by looking only at the metrics. The
curves also make it easy to see the effect that commissions and slippage have on the strategy.
OddsMaker continued…
Drawdown
The drawdown graph shows the drawdowns over the simulation period. A drawdown is the peak
to trough decline of the equity curve. Large drawdowns are what make traders quit trading.
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