IMPORTANT: revised Sharpe/Sortino "like" factors for stocks and ETFs

Dear All,

As announced here we have been revising our risk statistic algorithms to use more industry standards. During this process we noticed that the following factors/functions needed to be revised:

Sharpe(range[,bars,offset])
Sharpe1Y
Sharpe2Y

Sortino(range[,bars,offset])
Sortino1Y
Sortino2Y

The following changes we made:

  • Sortino used semi-deviation correctly. Previously returns higher than 0 were being thrown out, decreasing the ‘n’ in the equation (see HELP->GLOSSARY of RISK STATS). This change will affect ranks based on Sortino and past simulations could change.

  • Sharpe & Sortino were annualizing both numerator & denominator. It is now done at the end. This change by itself should not affect ranking

THIS CHANGES WILL GO LIVE TONIGHT.

Very sorry for the inconvenience.