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Equity Curve Chart

Plot the cumulative growth of a strategy so its shape, not just its endpoint, is visible.

What is an equity curve?

An equity curve is a line chart of the cumulative value of a portfolio or trading strategy over time, usually starting from a base of 100 or the initial capital. It answers the most basic question in performance analysis: is this account growing, and how smoothly? The slope shows the rate of compounding, while kinks, plateaus and dips reveal the regimes and setbacks the strategy passed through.

Strategy Equity Curveequity-curve

Illustrative one-year equity curve built from a synthetic return path. Data is for demonstration only.

The equity curve is the single most-viewed chart in trading and fund management because it collapses an entire track record into one line. A steep, steady rise is the ideal; jagged surges and collapses tell a more fragile story. This tool plots a year of daily equity so you can read the shape as well as the endpoint.

Reading the shape, not just the return

Two strategies can finish at the same value yet trace utterly different equity curves. A smooth, near-linear ascent implies consistent edge and modest volatility; a curve that lurches up then sideways for months implies the return was clustered in a few lucky windows. Because compounding punishes deep dips, the smoothness of the path — not merely its terminal height — determines how much of the paper gain a real investor keeps.

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The eye is a powerful first-pass analyst here. A curve that bends convex-upward is accelerating, often a sign of a strategy hitting a favourable regime; a concave flattening warns that edge is decaying. Long horizontal shelves are drawdown-recovery periods in disguise. Before running a single statistic, an experienced allocator learns a lot simply by studying the curve's silhouette.

Linear versus logarithmic scaling

On a linear axis a compounding curve looks like it accelerates forever, exaggerating recent gains. Plotting equity on a logarithmic axis converts constant percentage growth into a straight line, so a steady compounder appears linear and periods of faster or slower growth become visible as changes in slope. For multi-year track records the log view is usually the honest one, preventing early history from being visually crushed.

How Quadesto computes it

Quadesto turns a return stream or a raw NAV column into a cumulative equity curve, rebasing to a common starting value so multiple strategies can be compared on one axis. You can toggle linear or log scaling and overlay a benchmark. The curve above is rendered from a simple dated equity series, and the panel embeds anywhere you present performance.

Build this with your own data

Upload a CSV or connect a live source, and Quadesto renders this exact chart — styled, computed, and embeddable in your reports and newsletters. Free to start.

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Frequently asked questions

What does an equity curve show?
It shows the cumulative value of a strategy or account over time as a single line. The overall slope reflects the rate of compounding, while dips, plateaus and steep sections reveal drawdowns, stagnation and strong runs. It is the standard summary of a track record's shape.
What makes a good equity curve?
Generally, a smooth, steadily rising line with shallow, short-lived dips. Steadiness matters because deep drawdowns are hard to hold and slow to recover from. A curve that rises only in occasional bursts is more fragile than one that climbs consistently, even at the same end value.
Should I use a linear or log scale?
Use a logarithmic scale for long track records. It renders constant percentage growth as a straight line, so you can see whether compounding is steady or changing. A linear scale visually inflates recent gains and crushes early history, which can mislead over multi-year periods.
How is an equity curve different from a drawdown chart?
An equity curve shows cumulative value rising over time; a drawdown chart re-anchors to the running peak and shows only how far below it you are. The two are complementary — one shows growth, the other shows the pain endured to achieve it.
Can I plot an equity curve from my own trades?
Yes. Upload a returns or NAV series to Quadesto and the engine builds the cumulative curve, rebased to a common start. Add a benchmark overlay, switch to log scale if you wish, and embed the chart in reports.