Analytics & Statistics

Written By Emama Platform

Last updated About 1 month ago

In this section:

How do I read my equity curve?

The equity curve at the top of the Stats page is your single most important performance indicator. Before you look at any individual metric, look at the shape.

What a healthy curve looks like: a consistent upward slope with controlled drawdowns — not a straight line, but a curve that recovers from dips quickly and keeps making new highs.

Warning signs:

  • Long flat stretches — you're paying fees but not generating edge

  • Deep drawdowns that take a long time to recover — your risk management isn't protecting you

  • Choppy, directionless movement even if total P&L is positive — results are inconsistent

Use the time filters (1W, 1M, 3M, 6M, YTD, ALL) to compare different periods. Look for whether performance is improving, degrading, or consistent over time.

The legend lets you break down the curve by position type: Single / Smart, Long / Short, or Total — useful for isolating whether a specific subset of your trading is carrying or dragging the overall result.

→ See Analytics & Statistics for a full guide on reading the Stats module

What is Capital Efficiency?

Capital Efficiency is profit earned per $100 of volume traded. It tells you how much return your strategy is generating per dollar of capital rotated — not just whether you're profitable in absolute terms.

  • Above 5% — strong; your strategy is generating meaningful return on turnover

  • 1–5% — acceptable; there's edge, but it could be sharper

  • Below 1% — technically profitable but thin; fees can easily erode this

  • Negative — you're losing capital with every rotation

A strategy can show a positive total P&L but have very low capital efficiency — meaning it's doing a lot of volume for very little net result. That's important to know, especially if you're scaling up.

→ See Analytics & Statistics for the full Stats module guide

What is ECR?

ECR (Efficiency / Consistency / Risk index) is a single composite score that summarizes the overall health of your strategy across three dimensions:

  • Efficiency — how much profit you generate per unit of capital turned over

  • Consistency — win rate weighting; strategies that hit targets more reliably score higher

  • Risk control — deeper drawdowns reduce the score, penalizing fragile strategies regardless of returns

A high ECR means your capital is rotating efficiently, your results are steady, and your drawdowns are contained. A low ECR flags a strategy that may be profitable in absolute terms but is slow, inconsistent, or inadequately protected.

Use ECR as a quick health check over time: if it's trending up, your strategy is getting sharper. If it's declining, something has shifted — find out what before scaling.

→ See Analytics & Statistics for the full Stats module guide

What is Kelly %?

Kelly % tells you what fraction of your account you should risk per trade to maximize long-run equity growth — based on your actual historical edge.

Positive Kelly means your strategy has a measurable statistical edge. The higher the number, the stronger the edge.

Zero or negative Kelly means the math doesn't support the strategy — there's no positive expectation to compound. The rational action is to stop trading it.

In practice, most experienced traders use half Kelly or less — this keeps the growth compounding while significantly reducing volatility and drawdown risk.

The panel shows your current Kelly utilization:

  • Below 25% of Kelly — conservative; safe, but potentially leaving compounding on the table

  • 25–50% of Kelly — balanced; healthy growth with controlled risk

  • Above 50% of Kelly — aggressive; you're sizing up relative to your edge

→ See Analytics & Statistics for the full Stats module guide

What is PCI and why does it matter?

PCI (PnL Concentration Index) measures how evenly your profits are distributed across your trades — or how dependent your results are on a small number of big wins.

PCI Top 5% shows what share of your total profit came from just your top 5% of winning trades:

  • Below 35% — healthy; results are spread broadly across many trades

  • 35–60% — moderate concentration; worth watching

  • Above 60% — "lottery" profile; your P&L hinges on catching the occasional outsized winner

PCI HHI (Effective Winners) goes deeper — it calculates how many of your winning trades are actually contributing meaningfully to your profit. If your effective winner count is much lower than your total winner count, a handful of trades are carrying the strategy.

Why it matters: a strategy with high PCI concentration might look great in a backtest but fragile in live trading. If 80% of your profits came from 5 trades last quarter, ask honestly — can you reliably identify those trades in advance? If not, you may be running on luck more than edge.

→ See Analytics & Statistics for the full Stats module guide including R² and ECR