Sharpe Ratio

The Sharpe Ratio measures the return of an investment relative to its risk, expressed as the excess return per unit of volatility. A higher Sharpe Ratio indicates better risk-adjusted performance. A ratio above 1.0 is generally considered acceptable, above 2.0 is strong, and above 3.0 is exceptional. The Sharpe Ratio is widely used by institutional investors to compare strategies on a like-for-like basis, stripping out raw returns and focusing on efficiency. For retail traders evaluating signal providers, the Sharpe Ratio separates genuine edge from lucky performance in a bull market. When evaluating One-Signal's performance alongside risk-adjusted metrics such as beta and drawdown, all data is published transparently with no cherry-picking.

ONE-SIGNAL's Sharpe Ratio for it's S&P 500 solution is 2.7.

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