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What Is an Equity Curve?

An equity curve plots your account value over time. Its shape shows how consistent your results are.

Example

A smooth, rising curve with shallow dips suits prop firm rules. A jagged curve with deep dips suggests risk that will eventually hit a loss limit, even if the end result is profitable.

Why it matters on a prop account

Prop firm rules are fixed limits, so understanding the numbers behind your trading helps you stay inside them. Track this measure in your journal and review it monthly alongside your firm’s rules.

See our prop firm glossary and position sizing guide.

Prop firms we currently recommend

  1. 1

    FundedNext Best for MetaTrader users

    Max account
    $200,000 (up to $4M through scaling)
    Profit split
    80%, up to 95%
    Fee from
    $59.99 USD (confirm at checkout)
    Our rating
    4.4 out of 5
  2. 2

    SabioTrade Best for learning while you evaluate

    Max account
    $1,000,000
    Profit split
    80–90%
    Fee from
    $139 USD (confirm at checkout)
    Our rating
    4.0 out of 5

FAQ

What Is an Equity Curve?

An equity curve plots your account value over time. Its shape shows how consistent your results are.

Can you give an example?

A smooth, rising curve with shallow dips suits prop firm rules. A jagged curve with deep dips suggests risk that will eventually hit a loss limit, even if the end result is profitable.

Why should prop traders care?

Because it helps you stay within fixed loss limits and judge your strategy.