Sharpe Ratio 5.31: What It Means for Crypto Trading

In crypto, raw returns are easy to fake — just take bigger risk. The Sharpe ratio divides return by volatility, so it penalizes wild swings. A reading of 5.31 suggests the current sizing and stop-loss discipline are keeping risk in check relative to reward. With only 20 trades, the sample is small; the number is a sanity check, not a guarantee.