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What an equity curve shows
An equity curve draws what a portfolio was worth on every day of a backtest. Read it left to right: rises are gains, dips are losses, and the shape tells you how bumpy the ride was.
Two portfolios can end at the same value and still feel nothing alike. One climbs steadily; the other swings hard on the way. The curve is where you see the difference before you read a single number.
Next, measure one of those dips: Measure a drawdown.
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