FAQs

Calmar Ratio FAQs

How is the CAGR calculated in this tool?

It uses the exact number of seconds elapsed between the start of the lookback period and the current bar, providing a more accurate annualized figure than simple bar counting.

Why use Calmar instead of the Sharpe Ratio?

Sharpe uses standard deviation (volatility), which treats "good" upward volatility as risk. Calmar uses drawdown, focusing specifically on the risk of losing capital.

What is a "good" Calmar Ratio?

Generally, a ratio > 1.0 is considered strong. Exceptional traders or assets often maintain a ratio > 3.0, though this is rare over long periods.

Does the lookback setting affect the calculation?

Yes. A shorter lookback (e.g., 60 days) captures tactical performance, while the default 252 days (one trading year) provides a comprehensive view of annual efficiency.

What does the "Risk Visuals" setting do?

It enables a background heatmap where the intensity of the color corresponds to the current drawdown percentage, allowing you to see "pain points" historically.