Sharpe ratio on The Algo Benchhttps://thealgobench.com/tags/sharpe-ratio/Recent content in Sharpe ratio on The Algo BenchHugoen-INTue, 10 Nov 2026 00:00:00 +0000A great Sharpe ratio on a tiny edgehttps://thealgobench.com/landmines/sharpe-on-tiny-positions/Tue, 10 Nov 2026 00:00:00 +0000https://thealgobench.com/landmines/sharpe-on-tiny-positions/<h2 id="the-trap">The trap</h2> <p>A backtest reports a <strong>Sharpe ratio</strong> of 3 or more, or a return-to-drawdown ratio near 10. Both look like the signature of an outstanding strategy. Neither says how many rupees the strategy makes, and neither changes if you trade one lot or a hundred.</p>