Notes on portfolio analytics, risk, and broker integrations
Field notes from the team building AlphaLens — what we learn while wiring up brokers, computing the right metrics, and explaining risk to active traders.
What Is a Good Sharpe Ratio for a Retail Investor?
The Sharpe ratio measures return per unit of risk. Here's what the numbers actually mean for a retail portfolio — and why most traders have no idea what theirs is.
Max Drawdown Explained: What It Is and Why It Matters More Than Returns
Max drawdown tells you the worst loss you would have experienced holding a portfolio. It's often a better measure of risk than volatility — and most retail investors never track it.
Sortino Ratio vs Sharpe Ratio: Which Should You Use?
Both ratios measure risk-adjusted return, but they define 'risk' differently. For most active traders, the Sortino ratio tells a more honest story.
What Is the Calmar Ratio?
The Calmar ratio measures return relative to your worst drawdown. It's the most intuitive risk-adjusted metric for traders who think about risk in terms of 'how bad could this get?'
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