In my interview with Laurent Bernut in Episode 32, Laurent made the statement: [Tweet "The Sharpe Ratio is the right mathematical answer to the wrong question"] A number of listeners asked what he meant by this and he was glad to explain a little more, so here it is direct from … [Read more...]
Sharpe Ratio – the right answer to the wrong question?
Are your backtest results fooling you?
Have you ever started trading a strategy that performs well in the backtests but delivers a very different result when you begin trading it with real money? Could your backtest reports be fooling you by indicating a strategy is great but really only showing you part of the overall … [Read more...]
Do you know your Risk of Ruin?
Trading is a risky business and so many people who enter the trading world fail, losing large amounts of money in the process. Have you already lost a large sum of money or are you on the path to becoming another trading statistic? How do you know? Brent Penfold from IndexTrader.com.au, who … [Read more...]