Overview
Omega Ratio Quick Specs
Think of Omega as a fairness check: how often—and by how much—your returns beat the bar you’ve set versus how often they fall short.
Set your hurdle: You choose a Target Return per bar (e.g., 0.05% daily).
Tally each bar: When a bar clears the hurdle, we count how much it beat it by (“excess gain”); when it misses, we count the shortfall.
Roll it up: Over your chosen window, the indicator compares total wins vs. total misses.
If wins outweigh misses, Omega > 1 (quality is favorable).
If misses dominate, Omega < 1 (quality is weak).
Choose the lens: Use linear returns for steady markets or log returns for larger, jumpy moves and cross-asset comparisons.
Read it at a glance: A gradient line conveys intensity, reference levels at 0.5 / 1.0 / 1.5 / 2.0 frame poor→strong regimes, and built-in alerts ping on crosses of 1.0 to flag shifts in quality.
Under the hood, the indicator turns your hurdle into a bar-by-bar test and scores how consistently price clears it.
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