Definition
A measure of risk-adjusted return, dividing average profit by the standard deviation; higher is better.
Example
A betting strategy with a Sharpe ratio above 1.5 offers strong returns relative to the volatility experienced.
A measure of risk-adjusted return, dividing average profit by the standard deviation; higher is better.
A measure of risk-adjusted return, dividing average profit by the standard deviation; higher is better.
A betting strategy with a Sharpe ratio above 1.5 offers strong returns relative to the volatility experienced.