How-to: Company Pages
How to: Discovery
How-to: Portfolio Holdings
How to: Activity
How to: Leaderboard
How to: Performance
How to: Challenges
How to Trade
How to: use EquitySim to improve your recruitment potential
Fixing Account Errors
My Trade is not being processed
An investment in my portfolio is showing up as $0
Stock splits, mergers + acquisitions
I can't find a specific investment
I can't sign-up
My credit card is being declined
Showcasing your work on EquitySim
Designing a stand-out resume
Preparing for the S+T interview
STAR Structure for Behavioural Interview Questions
Interview Prep: Tell me about yourself
Interview Prep: Pitch me an Investment Idea
Interview Practice - Partner Exercise
Interview Prep: What to wear
2021 Credit-Suisse Investment Challenge
Case Study: 2019 Credit-Suisse Results
What is a Stock?
How to Choose a Stock
Active Trading vs Portfolio Management
How to start testing multiple strategies
What is an ETF?
How to Choose ETFs
What is short selling?
What is a Bond?
What is an Option?
What is Portfolio Management Strategy?
What is Diversification?
What is the Diversification Score?
How to Build a Basic ETF Portfolio
What are asset-classes?
What is Industry Exposure?
What is Geopolitical Exposure?
How to read impact on diversification
What is Volatility?
What is Return?
What is Sharpe Ratio?
How to Improve Sharpe Ratio
How do I measure risk?
What are average excess returns?
What is a good Sharpe Ratio?
Host your own EquitySim Challenge
Can users share an account?
How do I export classroom data?
How do I delete, archive and edit my class?
Challenge Setting Types
How does EquitySim compare to other simulations?
What are Trading Strategies?
What are some basic Financial Vocabulary?
Recording your Strategies and Rationales
What is EquitySim?
Can I undo a trade?
How are prices determined in the simulation?
Why didn't my trade execute immediately?
How do I exchange currency?
Why isn't my ranking showing up?
What are Public Portfolios?
How do I switch between portfolios?
How am I Graded?
Does EquitySim have sample assignments for my curriculum?
How are Options priced in the simulation?
How do I find my daily portfolio change?
How do the Portfolio Emails Work?
Is my data confidential?
How do I delete my account?
How our simulations reflect the real-world
What can I trade on EquitySim?
What is a good rationale?
How to set-up your team
What are the different order types?
Which government bonds can I trade?
To improve Sharpe Ratio you'll need to first increase your depth in understanding it. Sharpe ratio is comprised of two main components:
(1) Volatility: Sharpe Ratio tries to even out the fact that if you’re taking a lot of risk in your portfolio, you would have to a large enough return to justify that risk.
(2) Average Return: On EquitySim we take the daily change between each day, and take the average of those returns.
Sharpe Ratio - Where to Start?
Volatility is easier to predict than future returns.
On EquitySim, volatility considers a security's daily return for the last 90 trading days. The average return is the average of those inputs. A securities volatility usually stays consistent over fixed time frames.
Unlike Volatility, historical returns are NOT a good indicator of the future returns of an investment. This is where your skill comes into play, the job of an active manager to choose which investments will outperform.
Start by managing your volatility.
1) Set a daily volatility goal you'd like your portfolio to achieve
2) Find investments that help you achieve these goals
The volatility filter can be used here (sometimes found under advanced filters):
Volatility is categorized by 3-month volatilities.
3) Leverage Limit orders to cap the volatility of your holdings:
4) Launch your "targetted volatility" strategy and let it run on the simulation
5) Export and analyze your Sharpe ratio data
Once you have volatility figured out you can then start examining your return patterns and how both volatility and return work together in Sharpe Ratio.