Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 56% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Sapiens Markets has not accepted registrations from retail clients resident in Spain since July 31, 2024.

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Return/Risk Ratio

The Return/Risk ratio gives an estimate of how much return is obtained per ''unit of risk''.

The Return/Risk ratio gives an estimate of how much return is obtained per ''unit of risk''.

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It enables you to compare strategies in regards to the risk they can handle.

It is calculated by carrying out random strategy simulations which trade the same assets as the average strategy, and comparing them.

To have an idea of how good a strategy is:

  • Above 1, the strategy beats 68% of random strategies, it is good
  • Above 1.65, the strategy beats 95%, it is very good
  • Above 2, the strategy beats 99%, it is impressive