Glossary · Risk & money management
Equity curve
A chart of account value over time. A smooth, rising curve with shallow dips is the goal.
Related terms
Drawdown
The fall from an account’s peak to its lowest point before a new…
Backtesting
Testing a strategy on historical data to see how it would have…
Black swan
A rare, unpredictable event with extreme market impact, such as…
Correlation
A measure from −1 to +1 of how closely two pairs move together.…
Expectancy
The average amount a strategy makes or loses per trade: (win rate…
Flash crash
A sudden, very fast price collapse and rebound, usually in thin…