***

## ⚡ 1. Volatility (Annualized) — 86.98%

Volatility measures **how much your returns fluctuate**. The annualized version tells you how much variation to expect over a year.

* High volatility = bigger ups and downs.
* Low volatility = smoother performance.



👉 In this case, 86.9% means the portfolio experiences **large price swings** — both profitable and risky.

***

## 📈 2. CAGR (Compound Annual Growth Rate) — 44.93%

CAGR tells you how much your account grows **on average per year**, assuming profits are reinvested.



A CAGR of **44.9%** means the portfolio compounds aggressively — doubling roughly every two years. Impressive growth, but only sustainable with controlled drawdowns.

***

## ⚖️ 3. Sharpe Ratio — 0.82

The **Sharpe Ratio** measures **return per unit of total risk**. It compares your returns to a risk-free asset, adjusted for volatility.



* **> 1** → Good
* **> 2** → Excellent

At **0.82**, the system’s risk-adjusted efficiency is modest — good returns, but with significant volatility.

***

## 🎯 4. Sortino Ratio — 2.33

The Sortino Ratio focuses only on **downside volatility**, ignoring fluctuations from positive returns — making it a more realistic measure of “bad risk.”

A score of **2.33** means the system generates **very strong returns for the downside risk** it takes. It’s a hallmark of a **high-quality trading strategy**.

***

## 🧭 5. Calmar Ratio — 1.98

The **Calmar Ratio** compares your CAGR to your **maximum drawdown**, helping you see how efficiently you’re growing relative to your worst loss.



At **1.98**, it’s a well-balanced system: great growth for the risk endured.
(Above 1.5 is considered strong, above 2 is elite.)

***

## 💪 6. Alpha — 181.90%

Alpha measures **how much better (or worse)** your system performs compared to the overall market, adjusting for risk exposure (Beta).



A massive **181.9% Alpha** means the system isn’t just riding market waves — it’s **outperforming by a huge margin**, driven by genuine trading edge.

***

## 🔗 7. Beta — 0.16

Beta shows how much your portfolio moves in relation to the market.

* **β = 1** → Moves with the market
* **β \< 1** → Less sensitive
* **β > 1** → More volatile

A **Beta of 0.15** means the system is **mostly uncorrelated** — a big advantage for diversification.

***

## 💥 8. Maximum Drawdown — -35.97%

Max Drawdown (MDD) is the **worst peak-to-trough drop** in portfolio value before reaching a new high.



A **-36% drawdown** means that at one point, the strategy lost over one-third of its value. Manageable if returns are high, but it requires emotional and financial resilience.

***

## 🏆 9. Win Rate — 70%

The **Win Rate** is the percentage of trades that end in profit.



A **70% win rate** looks great — but it’s only meaningful when paired with metrics like **Profit Factor** and **Expectancy**, which tell you *how big* your wins and losses are.

***

## 💰 10. Profit Factor — 7.12

Profit Factor (PF) tells you how much you earn for every dollar you lose.



A **PF of 7.12** means for every ₹1 lost, ₹7 are made — an exceptional ratio. Anything above 2.0 is considered very strong.

***

## 📊 11. Expectancy — 13.96%

Expectancy measures the **average percentage gain or loss per trade**, incorporating win rate and risk-reward ratio.



At **13.96%**, this strategy makes roughly 14% profit per trade over the long run — a consistent positive edge.

***

## 🧮 12. SQN (System Quality Number) — 2.09

Developed by Dr. Van Tharp, the **SQN** quantifies how consistently profitable your system is.



Interpretation:

* **\< 1.6:** Poor
* **1.6–2.0:** Average
* **2.0–3.0:** Good
* **> 3.0:** Excellent

An **SQN of 2.09** shows a **good-quality system** with repeatable results.

***

## 🎯 13. Kelly Criterion — 0.60

The **Kelly Criterion** helps determine the **optimal fraction of your capital** to risk per trade for maximum long-term growth.



A **Kelly value of 0.6** means risking **60% of capital** per trade would theoretically maximize growth — though most traders wisely use **half-Kelly (30%)** to reduce drawdowns.

***

## 📊 Summary Table

| Metric        | What It Shows                 | Ideal Range        | Result |
| ------------- | ----------------------------- | ------------------ | ------ |
| Volatility    | Return fluctuation            | Lower = stable     | 86.9%  |
| CAGR          | Annual growth                 | Higher = better    | 44.9%  |
| Sharpe        | Return per risk               | >1 good, >2 great  | 0.82   |
| Sortino       | Downside risk-adjusted return | >2 excellent       | 2.33   |
| Calmar        | Return vs drawdown            | >1.5 strong        | 1.98   |
| Alpha         | Skill-based return            | >0 good            | 181.9% |
| Beta          | Market correlation            | \~0 = uncorrelated | 0.15   |
| Max Drawdown  | Largest loss                  | Lower = better     | -35.9% |
| Win Rate      | % winning trades              | >60% solid         | 70%    |
| Profit Factor | Profit/Loss ratio             | >2 great           | 7.12   |
| Expectancy    | Avg gain per trade            | >0 positive        | 13.96% |
| SQN           | System quality                | >2 good            | 2.09   |
| Kelly         | Optimal risk per trade        | 0.3–0.6 balanced   | 0.60   |

***

## ✨ Conclusion: Numbers Don’t Lie — They Tell a Story

Each metric gives you a unique lens to evaluate your system.
Together, they help answer three key questions:

1. **Am I growing fast enough?** → CAGR, Alpha, Profit Factor
2. **Am I taking too much risk?** → Volatility, Drawdown, Sharpe
3. **Is my edge consistent?** → SQN, Sortino, Expectancy

⚡ 1. Volatility (Annualized) — 86.98%

. The annualized version tells you how much variation to expect over a year.

👉 In this case, 86.9% means the portfolio experiences 

📈 2. CAGR (Compound Annual Growth Rate) — 44.93%

CAGR tells you how much your account grows 

 means the portfolio compounds aggressively — doubling roughly every two years. Impressive growth, but only sustainable with controlled drawdowns.

. It compares your returns to a risk-free asset, adjusted for volatility.

, the system’s risk-adjusted efficiency is modest — good returns, but with significant volatility.

, ignoring fluctuations from positive returns — making it a more realistic measure of “bad risk.”

very strong returns for the downside risk

, helping you see how efficiently you’re growing relative to your worst loss.

, it’s a well-balanced system: great growth for the risk endured.

(Above 1.5 is considered strong, above 2 is elite.)

 your system performs compared to the overall market, adjusting for risk exposure (Beta).

 means the system isn’t just riding market waves — it’s 

Beta shows how much your portfolio moves in relation to the market.

 — a big advantage for diversification.

 in portfolio value before reaching a new high.

 means that at one point, the strategy lost over one-third of its value. Manageable if returns are high, but it requires emotional and financial resilience.

 is the percentage of trades that end in profit.

 looks great — but it’s only meaningful when paired with metrics like 

Profit Factor (PF) tells you how much you earn for every dollar you lose.

 means for every ₹1 lost, ₹7 are made — an exceptional ratio. Anything above 2.0 is considered very strong.

average percentage gain or loss per trade

, incorporating win rate and risk-reward ratio.

, this strategy makes roughly 14% profit per trade over the long run — a consistent positive edge.

🧮 12. SQN (System Quality Number) — 2.09

 quantifies how consistently profitable your system is.

 to risk per trade for maximum long-term growth.

 per trade would theoretically maximize growth — though most traders wisely use 

✨ Conclusion: Numbers Don’t Lie — They Tell a Story

Each metric gives you a unique lens to evaluate your system.

Together, they help answer three key questions: