Calmar ratio

Calmar asks how much return a trader produced for the worst decline they endured. A ratio of 3.0 means three dollars of annual return for every dollar of peak-to-trough loss.

It differs from Sharpe in the denominator: Sharpe divides by typical volatility, Calmar divides by the single worst stretch. A trader with modest day-to-day swings and one catastrophic month looks fine on Sharpe and poor on Calmar.

Calmar was written for multi-year fund records. Most prediction-market traders have months, not years, and scaling a 2-month return up to an annual figure multiplies whatever luck was in the sample.

Treat an annualized Calmar on a short record as a ranking aid inside one time window, never as a forecast. If the underlying period is not stated next to the number, the number is not readable.

0xinsider computes a Calmar ratio for each wallet, but it appears only in the Pro data export, not on the profile. Reading max drawdown next to realized P&L on a profile gives you the comparison Calmar compresses, without the annualization.