What do you think?
If you’re not aware what the Sortino Ratio is, you can read more about it on Investopedia here: Sortino Ratio: Definition, Formula, Calculation, and Example
It’s a rational approach to the issue of comparing two portfolios, but hard to see it being really practical for private retail forex traders who wish to compare two strategies.
Following the same principles though, would you think that tracking average losses would be equally valuable? Many traders recommend tracking av. loss v’s av. gain.
I think for hedge funds it makes sense. For forex not so much. Maybe over a long term on a system that’s rigid, but over the short term I think it’s easy to get profits then wipe out
Well…we assume their lifespan is long enough, otherwise, who cares lol.
Yes, I think it matters. However, the winning percentage will also matter.