cashback forex ratio was proposed by Nobel Laureate William Sharpe and best forex copy trading the standard measure of the money management industry The formula Sharpe ratio = (average payout/standard deviation of payout) The numerator part of the howtocopyforextrading adjustment factor, which calculates the average of daily, weekly or monthly payouts For the payout of a given period, the payout of a risk-free instrument (e.g., treasury bills) must also be subtracted The denominator - which is also the risk component of the formula - is the standard deviation of the payoffs. If a strategy often makes or loses a lot of money, the standard deviation of the payoff allocation will be large and therefore a high-risk strategy. The resulting quotient is also multiplied by the period adjustment factor, which is the square root of the annualized period If the Sharpe rate uses daily payoffs, the period adjustment factor is the square root of 252 (the number of trading days in a year) to convert to the annualized Sharpe rate Similarly, if the Sharpe rate uses monthly payoffs, the period adjustment factor is the square root of 12 After adjusting the period to the annualized Sharpe rate, it is possible to There is no benchmark point for comparing two strategies with different test period lengths, so the size itself is meaningless and only has value in comparison with other portfolios. The larger the Sharpe Ratio, the higher the risk return per unit of risk invested. Weekly performance can be compared to IBM short term trading performance. In addition, the authors also mention benchmark strategy comparisons regarding the performance measurement of trading strategies, in addition to the use of Sharpe ratio and K-ratio, when evaluating other new ideas need to existing strategies as a benchmark channel breakout and moving average crossing system is currently the most commonly used strategies, the book "Comparison of Common Trading Strategies" has mentioned that the vast majority of new strategies Therefore, when we test any new idea, we compare it with these two strategies. long part: if todays forextradingsignal price is the lowest closing price of the last twenty days; establish short part: if todays closing price is the lowest closing price of the last forty days; end short part: if todays closing price is the highest closing price of the last twenty days; moving average crossing system also uses similar parameters: entry long: if the ten-day closing price moving average up through the forty-day closing price moving average ; short entry: if the ten-day closing moving average down through the forty-day closing moving average; these two systems are the benchmark for our evaluation of other strategies Each strategy is tested for 29 futures markets and 34 stock markets (including foreign exchange, interest rates, stock indices, metals, energy, grains, meat, soft; stocks including energy, industrial, consumer services, health care, financial) --- not all examples here), covering the period 1990 - 2001 low signals occur at the close of each day and then trade at the open of the next day starting capital: 10,000