Introducing the PNP Index – A New Financial Metric! 📊
I recently completed research on a new financial metric called the PNP Index (Positive-Negative Probability Index). Unlike traditional measures like the Sharpe ratio, this metric offers a more balanced way to evaluate returns and volatility, making it ideal for quantitative trading strategies.
🔹 Why is the PNP Index better?
✅ It uses logarithmic returns for accurate backtesting.
✅ It balances positive vs. negative fluctuations instead of just standard deviation.
✅ It enhances algorithmic trading and AI-based forecasting models.
📄 Read the full research paper on SSRN:
🔗 The PNP Index – A New Metric for Evaluating Financial Performance
papers.ssrn.com/sol3/papers.cfm?abstract_id=5120834
💬 What do you think? Could this metric help improve trading strategies?
I recently completed research on a new financial metric called the PNP Index (Positive-Negative Probability Index). Unlike traditional measures like the Sharpe ratio, this metric offers a more balanced way to evaluate returns and volatility, making it ideal for quantitative trading strategies.
🔹 Why is the PNP Index better?
✅ It uses logarithmic returns for accurate backtesting.
✅ It balances positive vs. negative fluctuations instead of just standard deviation.
✅ It enhances algorithmic trading and AI-based forecasting models.
📄 Read the full research paper on SSRN:
🔗 The PNP Index – A New Metric for Evaluating Financial Performance
papers.ssrn.com/sol3/papers.cfm?abstract_id=5120834
💬 What do you think? Could this metric help improve trading strategies?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.