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Returns Sharpe ratio in quantstrat

One of the main reasons to include an initial equity (in this case, initeq, which is set to 100,000) in your strategy is to be able to work with returns, which are based off of your profit and loss over your initial equity.

While you just computed a cash Sharpe ratio in the previous exercise, you will see in this exercise that quantstrat can also compute the standard returns-based Sharpe ratio as well.

Questo esercizio fa parte del corso

Financial Trading in R

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Istruzioni dell'esercizio

  • Use PortfReturns() on our portfolio strategy portfolio.st to get the instrument returns.
  • Compute the annualized Sharpe ratio using the instrument returns computed in the previous step.

Esercizio pratico interattivo

Prova a risolvere questo esercizio completando il codice di esempio.

# Get instrument returns
instrets <- PortfReturns(___)

# Compute Sharpe ratio from returns
SharpeRatio.annualized(___, geometric = FALSE)
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