How to observe sharpe ratio or algo score while selecting or continue using algo , like what’s a safe limit let’s assume like if algo score falls below 15 we may need to monitor algo carefully
If possible, could we implement automated alerts for end users to notify them of any significant falls or upward movements in the score?
Additionally, it would be very helpful if the system could provide an alert when a user selects an algo that may not be suitable for the current market conditions. Specifically, if a selection is made that does not align with the current market state, a notification could appear suggesting that the selection may not be correct.
So the algo score keeps on changing according to the trade(s) it takes. But 1-2 trades don’t really affect the score that much. But yes, you have to keep on checking if the algo score has changed by a lot @M_P_Patil
A recommendation is to add “Period-based Sharpe Ratio over multiple time horizons - 1W/1M/3M/6M/1Y/Max.” as currently is done for the P&L which is shown over multiple time horizons, since “Sharpe Ratio” for a strategy in general would consider the entire time horizon (Max. duration since its beginning) and sometimes might be irrelevant for ongoing market conditions. A fellow trader might over-rely on the Algo-score (of a strategy that it might have reached over a long period of operation) alone even if the strategy is not suitable. “Sharpe Ratio” over multiple horizons might give better visibility and understanding in differentiating its current relevance and suitability to the ongoing market regime/conditions.
