The following ârandom equity curve generatorâ has been referred to many times on ET: http://www.hquotes.com/tradehard/simulator.html IMHO, it provides various insights for the systematic trader. For example, I would propose the following two: Insight #1 â âItâs folly to compare two strategies based on the âshapeâ of their equity curves (e.g. âI like this strategy more than that one because its equity curve has a nice, upward-sloping shape without any big kinksâ ... I too have been guilty of such statements here on ET!). As the above generator shows, equity curve âshapeâ is largely the result of how random sequences of winners and losers play out. The same strategy could produce many different alternative equity curves, depending on how these sequences play out in practice.â Insight #2 â In building a resilient systematic strategy, it shows how important is the relationship between a) the ratio-of-average- winner-to-average-loser, and b) % winners. Any thoughts on the above? What other lessons does the random equity curve generator teach?