Backtesting Basics and Sample‑Size Discipline for Copy TradingKey Performance Metrics Every Copy Trader Should ScrutinizeWhen you look at a

Backtesting Basics and Sample‑Size Discipline for Copy TradingKey Performance Metrics Every Copy Trader Should ScrutinizeWhen you look at a trader’s track record, the first numbers that catch the eye are usually raw return and win rate. Those figures are easy to understand but can be misleading on their own. A more reliable gauge of skill is the risk‑adjusted return, often expressed as the Sharpe or Sortino ratio. These ratios compare the excess return to the volatility (or downside volatility) of the strategy, showing whether the trader is being rewarded for the risk taken. Another essential metric is maximum drawdown –...