Glossary

Equity curve

یہ قانونی صفحہ صرف انگریزی میں دستیاب ہے۔

Balance changes only when trades close; equity moves with every tick of open positions. The equity curve is the honest one: it shows the drawdowns a holder actually lived through, not just the closed-trade summary.

Reading equity curves is a skill: smooth ascents with sudden cliffs often mean strategies that bank many small wins while occasionally holding large losses — a shape that can hide enormous risk behind a high win rate.

Covered in depth in Lesson 13: جیت کی شرح ایک باطل میٹرک ہے۔ توقع بل ادا کرتی ہے۔.

Related terms

• Drawdown — The decline from an account's peak value to its subsequent low — the number that measures how painful a strategy is to hold.
• Win rate — The percentage of trades that close in profit — meaningless on its own, informative next to the reward-to-risk ratio.