This allows quick recognition of how well the system is working based on the price changes. This chart is of General Electric (GE). Some strategies don't work well with some stocks if the price action is not moving in a consistent direction as it is here in this chart. We have modified the strategy for this stock so that positive and negative equity could be shown together.

The equity chart is important from the standpoint of how well a strategy is really working. A good strategy will create an equity curve that has a consistent rise in profits without any large changes from day to day.

It is completely acceptable to see a negative equity curve at the beginning of a trading strategies life. The consistent change to a higher positive value is what is the key to a very good system.

Keep in mind that not all strategies will produce 100% profitable trades. Typically a very good system will have 60% to 70% profitable trades were each profitable trade is greater than a non-profitable trade.

The equity curve is going to be the most important part of your analysis. The equity curve is not the only tool available on the Prosignal web site.

Please see the trade and summary reports.