This is a good card, but not as good as some suggest.
A lot of players favorably compare Diabolical Luck to Fey. It's also sometimes referred to as "cursed Lucky!. Both analogies fall a little short.
Note that the value proposition of Fey is that it returns to hand if a Curse is revealed. If you're using Scrying Mirror, Premonition, Favor of the Moon, or other manipulation tactics though, the reactive benefit of this card is moot while the return to hand advantage of Fey is tremendous.
Meanwhile, while the reactive element of this card makes it valuable as a splash card to sort of toss into a deck that uses Curses, in much the way players toss in Lucky! simply for being good stuff without feeling obligated to build around it, it's worth noting that this card isn't nearly as reactive as Lucky!. You know for sure when you play Lucky! that it's going to pass the test for you, whereas this one can wind up being played to no consequence because you chain into more curses, or into the autofail, or into a token that would have let you pass the test anyway.
In short, this card is very good. It is not strictly better than Fey and is not as good as Lucky!. It definitely relegates Skeptic to bicycle spoke status though.