Show threadtradingFeb 23

Concluding Thought:
When volatility hides the edge this framework lets you chase the best risk reward setups with confidence.

#TradingEducation #TradingTips #RiskReward #SharpeRatio #Options #SwingTrading #OptionsPlay #DayTrader #TradingPsychology #RiskManagement #TradeExecution #TraderCommunity #TradingCircle #ConsistentProfits #NeverGiveUp (5/5)

Show threadtradingOct 15, 2025

The main risk is that a bear market can last longer than you expect. You might have a string of losses. That's why you size your positions small. Never risk more than 1% of your account on a single trade.

Using this approach forces you to only take the best opportunities. It's how you adapt.

#TradingEducation #RiskManagement #SharpeRatio #DayTrading #Investing<｜begin▁of▁sentence｜> (5/5)

Miki :rstats:Apr 26, 2025

#30DayChartChallenge Día 26: Monochrome! 🖤🤍 Riesgo y Recompensa en el IBEX 35, versión minimalista. #UncertaintiesWeek #Finance

Este gráfico monocromo muestra la evolución (ventana móvil 1 año) de:
⚫️ Ratio de Sharpe Anualizado (eje izq.): ¿Compensa el riesgo asumido? (Usando Bono Alemán 10A como Rf).
▒ Volatilidad Anualizada (eje der., discontinua): ¡El riesgo puro y duro!

La historia que cuenta: ¡cuando sube la volatilidad (gris), el Sharpe (negro) tiende a caer en picado (a veces bajo cero)! Visualiza la dinámica riesgo-recompensa del índice español en las últimas dos décadas.

🛠 #rstats #ggplot2 #data_table #quantmod | Data: Yahoo/Investing | Theme: Mod. theme_light
📂 Código/Viz: https://t.ly/pI1aF

#Day26 #Monochrome #dataviz #DataVisualization #SharpeRatio #Volatility #RiskManagement #MarketRisk #IBEX35 #Bolsa #RStats #ggplot2 #TimeSeries

Fabio CapelaApr 12, 2025
The Sharpe ratio (excess return/volatility) provides a mathematical way to compare risk-adjusted returns. But remember its limitation - it assumes normally distributed returns and ignores tail risk. What's your preferred risk-adjusted measure? #SharpeRatio #RiskAdjustedReturns #PortfolioMetrics
Fabio CapelaApr 11, 2025

📊 New Substack article: "The Sharpe Ratio: Understanding the Investment Industry's Favorite Metric (And Why It Might Be Misleading You)"

I dive into:
- What the Sharpe ratio actually measures
- Why investment professionals love it
- Its critical flaws (especially during market crashes!)
- Better alternatives you should consider

Plus: I've included 6 visualizations showing real market data that reveal when Sharpe ratios fail us.

#Investing #FinancialLiteracy #SharpeRatio #RiskManagement

https://freedomcents.substack.com/p/the-sharpe-ratio-understanding-the

The Sharpe Ratio: Understanding the Investment Industry's Favorite Metric (And Why It Might Be Misleading You)

When I first started investing seriously, I was overwhelmed by the jargon thrown around by financial advisors and investment platforms.

Algorithmic Financial Freedom
vim exiterNov 5, 2022
#introduction time: I am Steven, a math/stats hacker living in California. I'm here for #Rstats, #chess (well, #antichess), #bitters, #sightHounds, #catPix, #bakfiets, #learningJapanese. I wrote a book about the #sharpeRatio and maintain a bunch of R packages on #CRAN.