How to Read Equity Curves

Every trader profile on Arena shows several charts. Here's how to interpret them:

Equity Curve

The main chart showing cumulative ROI over time. A healthy equity curve slopes upward and to the right with minimal dips.

What to look for:

Shows how far below the peak the portfolio has fallen at any point. Always negative or zero.

Key metrics:

Rule of thumb: A max drawdown of 20% means the trader lost 20% from their best point. They need 25% gain to recover.

A histogram showing how many days had positive vs negative returns.

What to look for:

Symmetry: Bell-shaped = consistent. Skewed right = occasional big wins. Skewed left = occasional big losses.
Fat tails: Many extreme days = high volatility
Narrow distribution: Most days near 0% = low volatility, consistent

1. Compare 7D, 30D, and 90D curves — short-term performance can differ dramatically from long-term

2. A trader with lower ROI but smaller drawdown may be better for copy-trading (less emotional stress)

3. Check win rate + avg hold time together — a 90% win rate with 1-minute holds might be a bot

Every trader profile on Arena shows several charts. Here's how to interpret them:

The main chart showing cumulative ROI over time. A healthy equity curve slopes upward and to the right with minimal dips.

What to look for:

Shows how far below the peak the portfolio has fallen at any point. Always negative or zero.

Key metrics:

Rule of thumb: A max drawdown of 20% means the trader lost 20% from their best point. They need 25% gain to recover.

A histogram showing how many days had positive vs negative returns.

What to look for:

Symmetry: Bell-shaped = consistent. Skewed right = occasional big wins. Skewed left = occasional big losses.
Fat tails: Many extreme days = high volatility
Narrow distribution: Most days near 0% = low volatility, consistent

1. Compare 7D, 30D, and 90D curves — short-term performance can differ dramatically from long-term

2. A trader with lower ROI but smaller drawdown may be better for copy-trading (less emotional stress)

3. Check win rate + avg hold time together — a 90% win rate with 1-minute holds might be a bot