Trading glossary
Equity Curve
An equity curve is a line chart of your account equity over time, drawn from the cumulative results of your closed trades. The curve's slope shows whether you are making progress, its smoothness shows how consistent your results are, and its dips reveal periods of drawdown. A steadily rising equity curve is the visual signature of a positive expectancy; a sawtooth curve suggests inconsistent execution or oversized risk. In a trading journal like Traders Vault, the equity curve is generated automatically from your history, so you can review your progress without building charts by hand.
What is Equity Curve in trading?
An equity curve is a line chart of your account equity over time, drawn from the cumulative results of your closed trades. The curve's slope shows whether you are making progress, its smoothness shows how consistent your results are, and its dips reveal periods of drawdown. A steadily rising equity curve is the visual signature of a positive expectancy; a sawtooth curve suggests inconsistent execution or oversized risk. In a trading journal like Traders Vault, the equity curve is generated automatically from your history, so you can review your progress without building charts by hand.