SYS_EXTRACTION_INIT
DOWNLINKING VECTOR PARAMETERS
DECRYPTING CORE ALGORITHMS...
DECRYPTING CORE ALGORITHMS...
Audit the downside. Calculate the Sortino Ratio to measure risk-adjusted return while focusing only on harmful negative volatility.
While the Sharpe ratio penalizes "good" upside volatility, the **Sortino Ratio** only penalizes "bad" downside deviation. A ratio of 1.00means you are effectively managing the risk of losses while capturing growth. A Sortino > 2.0 is generally considered very strong.