Does anyone know the meaning of Sharpe Ratio ??
According to the help:
Ok ... but what is the real meaning of dividing the arithmetical mean profit by its standard deviation ? It's just results in arithmetical mean profit expressed in numbers of stddev ...
I can't figure out what this value is measuring.
If someone could explain, I would be very grateful.
It is a variation of "Return" divided by "Risk". You can check out this video on youtube for detailed info: https://www.youtube.com/watch?v=uOoYKaPqtH4
I get it !!! It's a measure that allows to compare results based on both, return and risk. The higher, the better.
Thanks a lot waterhorse !!!
Does anyone know how this is actually calculated in the history reports?