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Sortino Ratio

Sortino ratio: like Sharpe, but only penalizes downside volatility—useful for asymmetric strategies.

glossarysortinoriskmetrics

The Sortino ratio is similar to Sharpe, but it focuses on downside volatility only—penalizing harmful swings, not profitable ones.

Why traders use it

Strategies with big up days and small down days can look better on Sortino than Sharpe, because upside volatility is not treated as “bad.”

Simple example

Sortino helps highlight which one punishes the downside more severely.

Daily vs. annualized

dogabot shows Daily Sortino and Annualized Sortino in Key Metrics (Pro)—same scaling idea as Sharpe.

On dogabot

Use Sortino next to Sharpe: if Sortino is much higher, upside volatility may be driving Sharpe down.

Quick checklist

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Related in the app

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