Why Backtested Sharpe Ratios Are Almost Always Too High

A backtested Sharpe of 2.5 will almost certainly be lower in live trading. Understanding why helps you set realistic expectations and avoid overfitting.

Written by

Blockcircle Team

Financial market intelligence covering crypto, stocks, commodities, precious metals, and prediction markets.

Why Backtested Sharpe Ratios Are Almost Always Too High | Blockcircle