BTC Shart ratio

[Anonymous No.58020875]

No one's been talking about this, but the Sharpe ratio has been elevated for a while.
Now before you go top calling, last cycle it hit 2.7 at $38k (higher than the current peak figure), pulled down to 2 ish and then back up while bitcoin went to $69k. So it's not unreasonable to say that the price could still double from here after a little dumpoff.
What are the implications of such a high Sharpe ratio before the halving?

[Anonymous No.58021029]

You must type "shart" a lot for that autocorrect to happen.

[Anonymous No.58021043]

>>58020875
pfrtfrtrftrftfrtfrttrtrrrrrrrrrr
uh oh
stinky

[Anonymous No.58021503]

>>58020875
>What are the implications of such a high Sharpe ratio before the halving?
That sounds like another way of wondering yet again why we're pumping earlier than usual.
We just don't have that many data points to work with, so all we can do is hallucinate patterns, as meatbags often do.
In that light, I've just added a "Trailing Sharpe Ratio" indicator on my chart, which means I've just become an expert on the topic, so here are the facts, Jack:
(all ratios calculated as rolling ratio over the previous 365 days. I didn't bother adjusting the safe rate to match short term bond yields at each date, because fuck it.)

1st halving, November 28, 2012: Sharpe ratio = 2.92
- Sharpe ratio a month earlier =~ 2.29
2d halving, July 9, 2016: Sharpe ratio = 2.81
- Sharpe ratio a month earlier =~ 3.60
3d halving, May 11, 2020: Sharpe ratio = 0.72
- Sharpe ratio a month earlier =~ 0.94

So right now, a month before the 4th halving, we have a Sharpe ratio of around 4.0.
This doesn't seem particularly crazy when compared to the first two halvings.
Now, there's a historical pattern of the ratio dropping between T-30 and T where T is a halving day.
So hey, maybe that means it'll happen again this time too. Or maybe not. 3 data points is nowhere near enough to tell.
Trust me, I'm an expert.