> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/investing/risk-adjusted-performance/calmar-ratio/faqs.md).

# FAQs

<details>

<summary>How is the CAGR calculated in this tool?</summary>

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.

</details>

<details>

<summary>Why use Calmar instead of the Sharpe Ratio?</summary>

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

</details>

<details>

<summary>What is a "good" Calmar Ratio?</summary>

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.

</details>

<details>

<summary>Does the lookback setting affect the calculation?</summary>

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.

</details>

<details>

<summary>What does the "Risk Visuals" setting do?</summary>

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

</details>


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.candelacharts.com/investing/risk-adjusted-performance/calmar-ratio/faqs.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.