calmar Ratio in Forex Trading: Understand its Benefits
The Calmar Ratio, also known as the Calmar Ratio or C/M or CMGR, is a tool used by traders and investors in the Forex market to measure the reward to risk ratio of a position. The ratio is calculated by dividing the average annual rate of return on an investment by the maximum drawdown. The higher the ratio, the more favorable the investment is considered for having a higher risk-adjusted profit. The Calmar Ratio helps traders and investors determine which investments offer a better return over risk, and which ones to avoid, making it an important tool for investors in the Forex market.