Sharp ratio) = (expected return-risk-free interest rate)/portfolio standard deviation, also known as the ratio of return to volatility. For example, the yield of national debt is 3%, the expected yield of your portfolio is 15%, and the standard deviation of your portfolio is 6%. Then use 15%-3%, and you can get 12% (representing the income other than your risk-free investment), and then use12. In general, the Sharp ratio is mostly greater than 1.

Risk-free interest rate refers to the interest rate that can be obtained without any risk by investing funds in an investment object. This is an ideal investment income, which is generally affected by the benchmark interest rate. In the capital market, the interest rate of US Treasury bonds is recognized as a risk-free interest rate in the market, because the credibility of the US government is considered by the market not to default. In China, the interest rate of 10-year treasury bonds is generally considered as risk-free rate of return.

Maximum withdrawal rate: the maximum withdrawal rate of the yield at any historical point in the selected period when the net product value reaches the lowest point. Maximum retracement is used to describe the biggest loss that any investor may face. Maximum retracement is an important risk indicator, which is more important than volatility for hedge funds and quantitative strategy trading.

The formula can be expressed as follows:: D is the net value of a certain day, I is a certain day, J is the day after I, Di is the net value of products on that day, and Dj is the net value of the day after Di. Drawdown=max(Di-Dj)/Di, in fact, is to evaluate the withdrawal rate of each net value, and then find out the largest. It can be realized by program.