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Sharpe Ratio - is it correct? - page 3

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So, where's the error here? Does MT5 use some other formula for Sharpe Ratio or did I miss something in my calculations?
enivid:

So, where's the error here? Does MT5 use some other formula for Sharpe Ratio or did I miss something in my calculations?

 

You have missed divider in the StdDev formula

StdDev of HPR = Sqrt(((1.0002 - 1.00014999)^2 + (1.00009998 - 1.00014999)^2))/2) 

stringo:

 

You have missed divider in the StdDev formula

StdDev of HPR = Sqrt(((1.0002 - 1.00014999)^2 + (1.00009998 - 1.00014999)^2))/2) 

Thanks! The results match, but then the phrase in your guide looks rather misleading:

The obtained value will be divided by 29 (the amount of trades minus one).

In the above example there are 2 trades, that's why I divided it by 1 and not 2.

enivid:

Thanks! The results match, but then the phrase in your guide looks rather misleading:

In the above example there are 2 trades, that's why I divided it by 1 and not 2.

 

We don't use Bessel correction (n/n-1) because we assume standard deviation as biased root mean square deviation.

BTW 2 items have not statistical meaning. More items amount - less difference between biased and unbiased square deviations 

stringo:

We don't use Bessel correction (n/n-1) because we assume standard deviation as biased root mean square deviation.

BTW 2 items have not statistical meaning. More items amount - less difference between biased and unbiased square deviations 

That's understandable. It just may be misleading that you show one method in the article and use a slightly different method in the platform itself.
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