What is Sharpe Ratio?
Sharpe Ratio, risk-adjusted return. Above 1 is good, above 2 is excellent. Shows whether the risk is justified by the profit.
Example
A Sharpe of 1.8 means the strategy delivers solid return per unit of risk.
Sharpe Ratio, risk-adjusted return. Above 1 is good, above 2 is excellent. Shows whether the risk is justified by the profit.
A Sharpe of 1.8 means the strategy delivers solid return per unit of risk.
Educational material by MarketNerve — not financial advice.