Equity Curve
The equity curve shows how results accumulate over time. In Analytics, it follows recorded closed positions. In a Backtest report, it follows the simulated account path for the historical run.
What this is
This article explains how to read the equity curve and how to avoid overreacting to one headline PnL number.
When to use it
Use this article if:
- total PnL looks good but the path feels unstable
- you want to compare live Analytics equity with historical Backtest equity
- a strategy has long flat periods, sharp jumps, or deep drawdowns
- you need to decide whether a bot is improving or only recovering from losses
Before you start
Important current product behavior:
- Analytics equity is cumulative PnL after closed positions in the selected period
- Backtest cumulative profit is calculated from simulated trades in the report
- open positions can affect current risk before they appear as closed-position equity
- the selected bot and period control what the curve includes
Step by step
Step 1: Start with the shape, not the final value
A smooth upward curve is usually easier to trust than a curve built from one or two large jumps. The final value matters, but the path shows whether the strategy repeatedly produced results or depended on isolated trades.
Look for:
- long sideways sections
- sudden vertical gains or losses
- repeated recovery from drawdown
- one large trade carrying the whole result
Step 2: Read drawdowns as pressure
Drawdown is the distance from a recent high to a later low. In practice, it tells you how much pain the strategy created before it recovered.
A profitable curve with deep drawdowns can still be hard to run live, especially if the bot uses leverage, funding timing, or large position sizing.
Step 3: Compare Analytics equity with Backtest equity carefully
Analytics and Backtest answer different questions.
Analytics shows recorded operational results. Backtest shows what a saved configuration simulated on historical data.
When comparing the two, align:
- bot configuration
- symbol or all-coins mode
- market type
- date range
- fees and funding behavior
- warning banners in the backtest report
Step 4: Check the trades behind curve moves
When the curve makes a sharp move, open the Trade Log or the Backtest Deals tab. The curve tells you that something happened. The row details tell you why.
Check:
- entry and exit price
- duration
- fees
- funding PnL
- exit reason
- whether the move came from one position or many
What you should see
After reading the curve, you should know:
- whether returns are steady or clustered
- whether drawdown is acceptable for the strategy
- whether live and backtest periods are comparable
- which trades explain the largest curve moves
Common mistakes
- judging only the final PnL
- ignoring open-position risk because it is not yet closed
- comparing different date ranges
- assuming a smooth backtest curve guarantees a smooth live curve
- missing the single trade that produced most of the result
Related articles
- Why Live And Backtest Results Differ
- How To Read Backtest Report
- Trade Journal And Export
- Trade Distribution