Trading The Equity Curve


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.

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