Trading the Equity Curves

Nowadays, financial markets are no longer only for “big players”. Also small investors and traders have strong presence. Each of them uses their own strategy and therefore there are countless strategies. Each trading strategy has an equity curve, which gives us very important inside of how good or bad this strategy is. Aim of this paper is to look at the equity curve gained from the one specific trading strategy and find out, if it is possible to improve it (improve the final return, recovery factor, sharp ratio etc.) by applying some most used technical indicators on it. In other words, will we gain better performance by trading the equity curve itself? The used strategy is built on the well known idea of trading the divergences and the rules are applied on various currency pairs. In the results there is comparison of raw equity curves (unmanaged) and managed equity curves of this trading strategy.