# Overview

<figure><img src="https://3870127617-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCBVnUk5c5TVytimjy972%2Fuploads%2Fgit-blob-7c98f2f88056c78915c1708ddfbe2200c8a041c6%2Fdocs-sharpe-ratio-001.png?alt=media" alt=""><figcaption></figcaption></figure>

This implementation computes per-period returns from your chosen source and timeframe, subtracts a per-period risk-free hurdle derived from your annual input, and summarizes reward vs. variability over a configurable lookback.

{% content-ref url="features" %}
[features](https://docs.candelacharts.com/investing/risk-adjusted-performance/sharpe-ratio/features)
{% endcontent-ref %}

{% content-ref url="usage" %}
[usage](https://docs.candelacharts.com/investing/risk-adjusted-performance/sharpe-ratio/usage)
{% endcontent-ref %}

{% content-ref url="confluences" %}
[confluences](https://docs.candelacharts.com/investing/risk-adjusted-performance/sharpe-ratio/confluences)
{% endcontent-ref %}

{% content-ref url="faqs" %}
[faqs](https://docs.candelacharts.com/investing/risk-adjusted-performance/sharpe-ratio/faqs)
{% endcontent-ref %}

You can smooth the line with a light EMA and read it against well-known guideposts (0, 0.5, 1, 2, 3) with a right-edge label for quick checks.