Sharpe Ratio vs Sortino Ratio: What Each One Measures and When They Disagree
Sharpe counts every swing as risk. Sortino counts only the drops. See both worked on 12 months of hypothetical returns, and what it means when they disagree.
Entries by Spencer Li
Trading Performance Metrics: The 5 Numbers That Tell You If a Strategy Works
Win rate alone tells you almost nothing. The five trading performance metrics that do, profit factor and max drawdown included, worked through on 20 trades.
How Much Leverage Should a Beginner Use? Let Your Stop-Loss Decide
Leverage should come out of your position size, never go into it. How to work it out from your stop, what each level can survive, and Singapore’s CFD margin floors.
Is Averaging Down a Good Strategy? What the Lower Average Price Hides
Averaging down lowers your average price and raises your risk at the same time. The arithmetic on one falling stock, and a test to run before you add.
Order Types in Trading: Market, Limit, Stop and Stop-Limit Explained
Every order trades certainty of fill against certainty of price. Market, limit, stop and stop-limit orders compared, with what happens in a gap.