Information Ratio

Information Ratio on Tradomate.one is like a scorecard that tells you how well your portfolio’s returns stack up against a benchmark, often a well-known index like the S&P 500. It’s a performance indicator that considers not just the returns but also the relative volatility of those returns. The higher the Information Ratio, the better your portfolio is doing compared to the benchmark.

Think of it as your trading strategy’s report card. If your Information Ratio is high, it means your portfolio is outperforming the benchmark while keeping things steady. On Tradomate.one, understanding this ratio helps you gauge the effectiveness of your trading decisions against the broader market trends. It’s a valuable metric to guide you in optimizing your strategies, aiming for consistent success in the world of algorithmic trading.