Calmar ratio calculator: annualized return relative to drawdown
Review CAGR divided by maximum drawdown from a compatible trade-list CSV. Check the observation window, initial capital, and closed-trade equity limitations.
Calculate Calmar Ratio From Your TradesWhat Is Calmar Ratio?
Calmar compares annualized compound return with the magnitude of maximum percentage drawdown over the selected record. As an arithmetic illustration, 15% CAGR divided by 5% maximum drawdown equals 3. This is not an observed trading result or a rating of safety.
The PerformanceAnalytics reference describes a traditional three-year window, while its function accepts the supplied series. Pineify uses the available trade-list span rather than automatically restricting the calculation to three years. Record the window whenever comparing results.
Formula
How to Read This Number
With positive drawdown, a ratio of 1 means annualized return and maximum drawdown have equal numerical magnitudes. A ratio of 3 means the annualized return is three times that drawdown magnitude. These comparisons do not tell you how long recovery took, how likely a future loss is, or whether the strategy is suitable.
Use comparable windows, capital assumptions, and equity sampling. Annualizing a short period can magnify a brief gain, and closed-trade observations can omit losses while trades remain open. A higher result can reflect a different observation method rather than a better strategy.
What Counts as Good?
| Range | Value | What It Means |
|---|---|---|
| Positive return | Above 0 | Positive CAGR divided by positive maximum drawdown. The value is a ratio, not a universal quality grade. |
| Zero return | 0 | With valid inputs and positive drawdown, zero CAGR gives zero. The app also uses zero for some invalid or insufficient-data cases, so inspect inputs. |
| Negative return | Below 0 | Negative CAGR with positive maximum drawdown. The record lost capital over its evaluation window. |
| No observed drawdown | Undefined | A zero denominator has no finite ratio. The app currently uses a numerical fallback; do not rank it as a valid Calmar result. |
How Pineify Calculates Calmar Ratio
Pineify starts from the configured initial capital and adds imported net trade PnL. CAGR uses the interval from the first entry to the latest exit, expressed in 365.25-day years. Maximum percentage drawdown comes from the reconstructed trade observations, not a continuously marked-to-market account history. Deposits and withdrawals are not reconstructed from this trade list. Implementation limits matter: trades are processed in entry-time order, so overlapping trades whose exit order differs need independent reconciliation. Fewer than two trades return zero for risk metrics. Non-positive ending capital or a non-positive time span also produces a zero CAGR fallback. With zero drawdown, the current Calmar calculation returns 100 when CAGR is positive, otherwise zero. Those fallbacks are not mathematical evidence of a valid ratio. CSV parsing and metric calculations run in the browser. Requesting the optional AI analysis sends a derived summary of metrics, monthly results, rolling statistics, and Monte Carlo results to the analysis API. Do not interpret local calculation as a promise that every feature keeps all derived data on the device.
Review Your Calmar Ratio
Upload your TradingView backtest CSV and get Calmar Ratio alongside other return and risk metrics. Check the input assumptions before comparing results.
Analyze Your Backtest NowSources and calculation references
Frequently Asked Questions
Everything you need to know about this metric