Post Tagged with: "trading the equity curve"

Trading The Equity Curve

October 5, 2015 5:00 am11 comments

Some trading systems have prolonged periods of winning or losing trades. Long winning streaks may be followed by a prolonged period of drawdown.  Wouldn’t it be nice if you could minimize those long drawdown periods? Here is one tip that might help you do just that. Try applying a simple moving average to your trading system’s equity curve and use that as a signal on when to stop and restart trading your system. This technique just might radically change your trading system’s performance. How to do this? Well the moving average applied to your trading system’s equity curve creates a smoothed version of your trading system’s equity curve. You can now use this smoothed equity curve as a signal on when to stop or restart trading. For example, […]

Read more ›