Sharpe Ratio

The Sharpe ratio is a strategy's average return above the risk-free rate divided by the volatility of its returns — reward per unit of risk. A Sharpe of…

Questions people ask

What is Sharpe Ratio in crypto trading?

The Sharpe ratio is a strategy's average return above the risk-free rate divided by the volatility of its returns — reward per unit of risk. A Sharpe of 1 means the return roughly equals the swings taken to earn it; above 2 is rare and usually short-lived. It punishes strategies that make money by being wildly volatile.

Crypto Jargon

Live numbers load with JavaScript and refresh every few minutes; the text above is the page at build time.