Sharpe Ratio
A measure of risk-adjusted return: excess return over the risk-free rate divided by the standard deviation of returns.
The Sharpe ratio answers a simple question: how much return are you earning per unit of risk? It divides a strategy's excess return (above the risk-free rate) by the volatility of its returns. A higher Sharpe means smoother, more efficient performance; a ratio above 1 is generally considered good, above 2 excellent.
Because it penalises volatility, the Sharpe ratio rewards consistency over lucky home runs. endeavr.ai reports Sharpe alongside Sortino and Information Ratio for every backtested strategy so you can compare risk-adjusted performance, not just headline returns.