Sharpe Ratio - What you need to know | #tradingstrategy #tradingstrategies #trading
#sharperatio #tradingstrategy #tradingstrategies #trading
The Sharpe Ratio is a tool that tells us the quality of a trading strategy or the performance of an investment fund.
It’s a widely used indicator for comparing the return and its risk. The name is given by its inventor, William Sharpe, who developed the ratio during the 1960s. Sharpe later won the Nobel Prize in economics in 1990 for his contributions to the financial industry.
The Sharpe Ratio measures the excess return compared to the risk-free rate per unit of risk. The less swings in the returns, the better (higher) the Sharpe Ratio. All things equal, investors prefer the smoothest returns. If your strategy is volatile, you need to be compensated in the form of higher returns.
This video explains what the Sharpe Ratio is and clarifies what a good Sharpe Ratio is: a good Sharpe Ratio is preferably above 0.75, but be careful if it's above 1.5 (could be curve fitted).
If you want to go into more detail about the Sharpe Ratio, please have a look at our article on our webpage.
More about the Sharpe Ratio:
https://www.quantifiedstrategies.com/sharpe-ratio
Our Twitter
https://twitter.com/QuantifiedStrat
Our Instagram
https://www.instagram.com/quantified_strategies
-
1:25:19
Josh Pate's College Football Show
6 hours agoTennessee Silences OU | Michigan Beats USC | Hugh Freeze Problem | Early UGA-Alabama Thoughts
45.9K1 -
6:34:23
Barstool Gambling
13 hours agoDave Portnoy, Big Cat, and Co Sweat Out the Sunday Slate | Barstool Gambling Cave
62.4K6 -
25:34
Stephen Gardner
10 hours ago🔥Trump MUST BE KEPT ALIVE at all costs! | Exclusive RFK JR Interview!!
117K220 -
53:31
Standpoint with Gabe Groisman
17 hours agoEp 50. God is Real! with Academy Award-winning actor John Voight
125K53 -
35:04
Power Slap
7 days agoPower Slap: Road to the Title - Season 3 Episode 9 - Bring Out That Monster
835K112 -
15:52
Scammer Payback
1 month agoScammers Located in this Apartment
183K69 -
10:41
Breaking Points
3 days agoARSON, 'FREAK OFFS', LUBE: Diddy Indictment SHOCKING DETAILS
160K64 -
45:44
hickok45
20 hours agoSunday Shoot-a-Round # 247
113K55 -
3:34
Cooking with Gruel
1 day agoBrown Butter Deviled Eggs
101K13 -
11:06
Bearing
16 hours agoThe Office 2024 Australian Reboot Looks GARBAGE
84.4K30