An equity curve is the plot of a trading account’s balance (equity) over time. In robot journaling, it visualizes cumulative profit/loss as the algorithm runs. A smooth upward-sloping equity curve suggests consistent robot performance, while jagged or downward trends highlight issues. For example, flat plateaus or steep drops in the equity curve can indicate periods of break-even trading or large drawdowns, respectively. Traders examine the equity curve to track performance consistency and psychological impact. A steadily rising curve maintains confidence; conversely, a bumpy curve alerts developers to optimize trade logic or risk. Most journaling tools (MyFxBook, Edgewonk, TraderSync, etc.) automatically generate equity graphs, making it easy to assess whether a robot’s strategy is robust or needs parameter adjustments. By analyzing an equity curve, one can fine-tune an algorithm (e.g. adjusting stop-losses or entry criteria) to achieve a smoother, more profitable progression.

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