The Linear Equity Graph shows the total and closed equity profile over time measured on a linear scale with the comparative drawdowns over the same period plotted below that graph:
Closed Equity display is controlled by the settings in the Preference's section Reporting General.
On the Linear Equity Graph, both Total Equity and Closed Equity are plotted over time on the graph. This graph has a vertical scale that is linear, or arithmetic, as opposed to logarithmic scale of the Log Scale Equity Graph.
On a linear-scaled Equity chart, a given distance (on the vertical axis) always represents the same absolute change in system wide base currency. For instance, on the chart above, the distance between $10,000,000 - $20,000,000 is the same as the distance between $20,000,000 - $30,000,000. While linear scale Equity Curve graphs tend to lose resolution in the earlier years of an extended study (as can be seen above), most of us are accustomed to looking at linear representations, and they do have their uses.
In the bottom half of the graph, Total Equity and its Drawdown are plotted in blue; Closed Equity and its Drawdown are plotted in red. Drawdown is a retracement from a previous Equity peak, and is expressed here in percentage terms. This type of graph is also sometimes referred to as an Underwater Equity curve.
Edit Time: 6/25/2017 8:20:58 AM
Topic ID#: 4004