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PERFORMANCE METRICS -- which most reliable?

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  • PERFORMANCE METRICS -- which most reliable?

    Which site calculates the Sharpe Ratio correctly? As is widely accepted?
    These articles talk about the standard measure and how it should be calculated. But which verified account statistics sites has the right calculation?
    What other performance measures / metrics are most widely watched by those looking for talented traders / systems?
    Colmar Ratio? Sortino Ratio? Profit Factor? Recovery Factor?
    I would appreciate a healthy dialogue about which score you feel is the best measure overall used by Trading Talent Recruiters and those analyzing the returns achieved by emerging money managers / portfolio managers.

    MEASURING PORTFOLIO PERFORMANCE: THE SHARP RATIO AND SORTINO RATIO FOR VALUE INVESTORS By Stig Brodersen Whenever we hear about great investors, like Warren Buffett and Ray Dalio, we usually measure their accomplishments by their net worth and returns.

    See my Sharpe Ratio at these three different verification websites and all have different calculations for my Score:!/home/leaderboard -- Outside the Box is now ranked #12 -- Sharpe Ratio = 4.16 -- Sharpe Ratio = 1.97 -- Sharpe Ratio = 0.63 -- Sharpe Ratio = 3.83 -- Sharpe Ratio = 0.18 -- Sharpe Ratio = 0.19

  • #2
    In general, any of these systems can be suitable for assessing risk and reward.
    And this is like a certain part of statistics that allows you to focus in time on what you need or give up some ineffective moments in time in order to move forward and not worry that something will go wrong precisely because of your fault.
    In general, real freedom lies in the fact that in this business you can use different approaches and different analysis systems, and if you have a good understanding of the mechanism of the chosen solution, then for you it will really become something effective and convenient in your daily work.
    The main thing in principle is to use this, because the absence of boundaries and rules is no longer a business.


    • #3
      I know of no other more effective method of assessing profitability in the market than money. The money that you earn not by chance, but precisely as a result of your productive work, which consists of analyzing the market, calculating risks and competent distribution of capital. It is all these components that can radically affect the results and lead to the fact that you can become a real professional who knows how to make money in the market and has managed to create a normal business that brings stability and confidence in the future. So if you see that your capital is growing and you understand what you are going to do next, then everything is in order. And if not, then you obviously need to change something and as soon as possible.


      • #4
        And I think so - the main thing is that at least 60% of orders are profitable, and in this case we will definitely see profit, even if we always work with the same orders and volumes. Although here, of course, the key importance is whether you know how to insure positions and whether you can understand in time when you should open an overlapping position. These are essential skills for working in the market, which are applied by both beginners and true professionals. In any case, you will have to learn this, because without this you will not be able to correctly navigate the decisions made and these numerous news. And I really do not regret the time at all, because I clearly understand what it will bring me in the future.