Two accounts finish the year at the same value, built from the same set of returns. One you could have held without much stress. The other spent months trading below…
Picture a book of six positions spread across different sectors, the kind that looks diversified on paper. On the three worst sessions of a rough stretch, all six close red…
A trader can be right more often than wrong, collect two dollars on every winner for each dollar lost, and still drive the account to zero. It sounds impossible until…
A look back through a trade ledger tends to show the same pattern. Eight months of small losses and tiny scratches, the equity curve flat enough to stare at, and…
The sortino ratio is a risk-adjusted return measure calculated as a strategy's excess return over a minimum acceptable return, divided by its downside deviation. The formula in one line is…