RightEdge  The Ultimate Backtesting and Trading System Development Platform Sharpe Ratio 
The Sharpe Ratio, developed by William F. Sharpe, is used to measure risk/reward efficiency within a portfolio or trading strategy. The calculation uses the standard deviation of returns to determine how "risky" a portfolio is. The higher the Sharpe Ratio value, the better the risk for return the portfolio is. A Sharpe ratio value around or greater than 2 is considered excellent. It is generally advised that anything below 1 should not be considered. See Also
