# How to find risk reward in your investment? **URL:** \ **Category:** Trading and Markets\ **Created:** [October 30, 2021, 11:39pm UTC](https://forums.collective2.com/t/how-to-find-risk-reward-in-your-investment/15208 "2021-10-30T23:39:14Z")\ **Posts on this page:** 1\ **Showing post:** 36
**Author:** ![TheForexSniper](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/theforexsniper/32/13320_2.png) [@TheForexSniper](https://forums.collective2.com/u/TheForexSniper)\ **Post date:** [November 2, 2021, 4:12pm UTC](https://forums.collective2.com/t/how-to-find-risk-reward-in-your-investment/15208/36 "2021-11-02T16:12:40Z")
It seems that there are many ways to calculate the sharpe ratio (SR) of a trading system. How this SR is calculated on C2 is still unclear, as far as I can tell from these two Sharpe ratio topics : > [@How is C2 calculating Sharpe Ratio? I can't replicate the results](https://forums.collective2.com/t/how-is-c2-calculating-sharpe-ratio-i-cant-replicate-the-results/10752): > > How is C2 calculating Sharpe Ratio? I have downloaded the trading history for several different systems to try to reproduce the sharpe that C2 reports, but my numbers aren’t matching up to what C2 is showing. I have tried calculating and annualizing in several ways. I want to make sure that I’m comparing apples to apples when comparing the Sharpe’s C2 is reporting to the Sharpe’s being reported by mutual funds, other sites, etc… Any help is appreciated. Thanks! > [@Sharpe Ratio understanding](https://forums.collective2.com/t/sharpe-ratio-understanding/4079): > > Can someone help me with understanding Sharpe Ratio calculations. I thought I understood it, but the ratio on some of my systems just doesn’t make sense to me. Here is my reasoning: The formula for Sharpe Ratio is: S(x) = ( rx - Rf ) / StdDev(x) where x is some investment rx is the average annual rate of return of x Rf is the best available rate of return of a “risk-free” return StdDev(x) is the standard deviation of rx StdDev(x) is always going to be a postive numbe… --- _[View the full topic](https://forums.collective2.com/t/how-to-find-risk-reward-in-your-investment/15208)._