Calmar Ratio or MAR actually tells you the potential opportunity gain against opportunity loss. It is calculated by compunded annualized return divided by Maximum drawdown.For example annualized return is 20% and maximum drawdown is 5% then calmar ratio will be 4

Remeber that when you analyze someone's trading performance, you cannot judge it on the basis of Calmar ratio alone. You have to see other ratios too e.g. sharpe ratio and Sortino ratio etc.

ok, let's a play a game then

Go to this link: http://www.fxstat.com/performances/view/Novas_Account-5120

And now divide the Yearly Profit by the Max Drawdown. Get the number.

Now check the Calmar Ratio. It seems like magic doesn't it!?   

Originally posted by CheckDavid

ok, let's a play a game then

Go to this link: http://www.fxstat.com/performances/view/Novas_Account-5120

And now divide the Yearly Profit by the Max Drawdown. Get the number.

Now check the Calmar Ratio. It seems like magic doesn't it!?    " />

Whats the magic in it?

Originally posted by Bee

 

Originally posted by CheckDavid

 

ok, let's a play a game then

Go to this link: http://www.fxstat.com/performances/view/Novas_Account-5120

And now divide the Yearly Profit by the Max Drawdown. Get the number.

Now check the Calmar Ratio. It seems like magic doesn't it!?    " />

 

" /> Whats the magic in it?

 

I think CheckDavid is saying that lets see if answer is correct or wrong

Originally posted by Bee

 

Originally posted by CheckDavid

 

ok, let's a play a game then

Go to this link: http://www.fxstat.com/performances/view/Novas_Account-5120

And now divide the Yearly Profit by the Max Drawdown. Get the number.

Now check the Calmar Ratio. It seems like magic doesn't it!?    " />

 

" /> Whats the magic in it?

 

The magic is in mathematics, just do it yourself.

Wow. Mathematics............ Most of the people prefer anything else but mathematics. I will leave it to you (the mathematics part). Just share the "magic" with me.

Originally posted by Jogi

Wow. Mathematics" />" />............ Most of the people prefer anything else but mathematics. I will leave it to you (the mathematics part). Just share the "magic" with me.

 

The magic is in the Maths, without it you can only see darkness

The magic is in the Maths, without it you can only see darkness " />

hmhmmhmhmh. So to see the magic I have to hire a mathematician

Originally posted by Jogi

 

The magic is in the Maths, without it you can only see darkness " />

 

hmhmmhmhmh. So to see the magic I have to hire a mathematician" />

" />

 

Nah man, you can just use a calculator.

Just click here http://www.calculator.com/pantaserv/makecalc?

I think he sees it as unbelievable.

Bee, on your calculation, 20/5 is 4, how can you conclude the potential opportunity to gain or lose?