> 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

Calmar Ratio 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>


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