Dive into the essential metrics for evaluating trading strategies: the Sharpe and Sortino ratios. The Sharpe ratio, developed by Nobel laureate William F. Sharpe, offers a robust measure to compare investment portfolios by calculating returns over risk using basic financial metrics. It’s ideal for gauging performance but hinges on the normally distributed return assumption. The Sortino ratio refines this by focusing on downside risk, giving a clearer picture of strategic performance without penalizing positive volatility. These tools, adaptable across various timeframes and assets, empower traders and developers to make informed decisions by accurately assessing risk versus reward in trading environments. #MQL5 #MT5 #Strategy #AlgoTrading mql5.com/en/articles/91…

@mql5com Great breakdown! I always found the Sortino ratio more useful for my trading style since it focuses on downside risk. @adam_maxwellTX had a good thread explaining this exact difference last month - worth checking out!

Finally, a DeFi app that doesn’t make you do mental math.