Results Dashboard

Sharpe Ratio: annualized return divided by annualized volatility. Above 1 is acceptable. Above 2 is strong. Below 0.5 is weak and likely not worth deploying.

Max Drawdown: the largest peak-to-trough decline in equity. This is the number you need to be able to stomach live. Calmar Ratio: annualized return divided by max drawdown — a higher number means more return per unit of pain.

Win Rate: percentage of trades that were profitable. A high win rate is not required — many profitable strategies win 40% of the time but have large average winners and small average losers. Check the Profit Factor (gross profit / gross loss) alongside win rate.

Average Trade Duration: how long positions are held. Very short durations in a higher-timeframe strategy may indicate the stop-loss is too tight. Very long durations may indicate positions are being held through full reversals.

The equity curve shows the cumulative profit/loss over time. A healthy equity curve trends upward with moderate drawdowns. Warning signs: a long flat period followed by a sharp rise (the strategy "got lucky" at the end), or a smooth curve with a single catastrophic drawdown at the end.

The drawdown chart below the equity curve shows the depth and duration of each drawdown period. Long drawdown durations (months) are difficult to endure live, even if the strategy eventually recovers.