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
What are some basic Financial Vocabulary?
How to get recruited using EquitySim
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
What is a Stock?
How to Choose a Stock
Active Trading vs Portfolio Management
How to start testing multiple strategies
What is Portfolio Management Strategy?
How to Build a Basic ETF Portfolio
What is an ETF?
How to Choose ETFs
What is a Bond?
What is an Option?
What are Trading Strategies?
What is short selling?
Understanding Metrics / Data
What is Diversification?
What is the Diversification Score?
What are asset-classes?
What is Geopolitical Exposure?
What is Industry Diversification?
What is Geographical Diversification?
What is Industry Exposure?
How do I read the Diversification Radar Chart?
How to read impact on diversification
What is a good Sharpe Ratio?
What is Sharpe Ratio?
What are average excess returns?
How to Improve Sharpe Ratio
How do I measure risk?
What is Return?
What is Volatility?
Credit-Suisse Investment Challenge
Recording your Strategies and Rationales
Showcasing your work on EquitySim
Adding structure to your interview answers
Preparing for the interview
Preparing for the Sales + Trading Interview
Credit-Suisse: 2019 Case Study
2019 Credit Suisse Investment Challenge [Fall]
2020 Credit Suisse Investment Challenge [Fall]
2020 Credit Suisse Investment Challenge [Summer]
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 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.