True equity curve example:.
Assume your initial capital is $100,000.00, the entry price of your first trade is $35.00, the exit price of your first trade is $47.00, you are trading 10 shares, and you have an entry and exit commission of $4.00.
When you enter your first trade:
Initial Capital = Initial Capital - ((Entry Price * Num Shares) - Entry Commission)
$100.000.00 – ((35.00 * 10) – 4)
$100.000.00 – (350 – 4)
$100.000.00 – 346
99654.00
Initial Capital = Initial Capital - ((Exit Price * Num Shares) - Exit Commission)
99654.00 + ((47.00 * 10) – 4)
99654.00 + (470 – 4)
99654.00 + 466
100120
Repeat for each trade.
Adjusted equity curve example:
(To be added)