The Trade Management graph analyzes the trade management approach and shows the effectiveness.
The green graph shows "Actual Performance" in terms of R-Multiple.
The orange graph shows the performance the trader may have realized with a passive set-and-forget approach.
The set-and-forget approach is a fully passive trade management approach where the trader does not interfere with the trade in any way after the trade has been entered.
That way, the Trade Management graph can analyze whether cutting losses too late, getting out of winning trades or any other active trade management is enhancing the performance of costing the trade money.
When the orange (potential performance) line is higher than the green (actual performance) line, it means that the trader may have mismanaged their trades. A passive approach may have provided a better return in terms of R-Multiple.
Causes for the orange line to rise above the green line are cutting losses too late or exiting potentially winning trades too soon.
Only then will the Trade Management graph be able to accurately analyze trade management effectiveness.