Sharpe Ratio Method

Sharpe Ratio Method
(Also see Sterling ratio method) The Sharpe Ratio Method is the classic return/risk measure, given by:
where:
E = Expected return
I = Risk-free interest rate
sd = Standard deviation of returns ...

Sharpe Ratio Method
A return/risk measure used to compare the performance of a trading system or a money manager, where: E = Expected return I = Risk-free interest rate SD = Standard deviation of returns ...

See also: Test, Shadow, Real Body, Pennant, Charting