Users guide:

Welcome to SharpeRatioView

SharpeRatioView helps you understand potential future price movements and optimize your investment strategy. This guide will walk you through how to use the application to explore price trends and probabilities for major indices like NASDAQ, EuroStoxx, DAX, Nikkei 225 and KOSPI200.

Understanding Price Probabilities

SharpeRatioView goes beyond simple price predictions by providing estimated Probability Distribution Functions (PDFs). Using historical data and advanced statistical modeling, the application forecasts the likely distribution of prices for your chosen indices over the next 7, 10, or 14 trading days. This means you'll see a range of potential price outcomes and their associated probabilities, giving you a more comprehensive view of market uncertainty.

By leveraging SharpeRatioView, you can gain valuable insights to help you discover your "Sharpe View" and make more informed decisions for optimal risk-reward.

Functional guide

Exploring Instruments: The Instrument List View

The Instrument List View serves as your central hub for selecting and initiating the analysis of individual financial instruments. To ensure focused insights, only one instrument can be actively selected for detailed examination at any given time.

When the application starts, an initial list of instruments will be populated, driven by your choice in the Instrument Source dropdown menu. Following this, SharpeRatioView loads essential data, including historical price candles, and our secure cloud service performs real-time calculations of key performance and risk metrics for each instrument. To help you quickly identify potentially optimal opportunities, the instruments within this list are automatically sorted by their Sharpe Ratio (from highest to lowest).

Instrument identifiers are presented in the format of 'name.ext'. The 'name' part is the primary identifier for the instrument, while the 'ext' suffix clarifies its trading venue (e.g., a specific exchange) or denotes 'INDX' for a global index."

Exploring return probability

After selecting Daily Return Probability from the View Selector, you can begin to explore comprehensive return information for your chosen instrument.

At the bottom of the screen, you will see the Historical Price Candles, providing a visual history of the instrument's price movements over time. At the top, you'll find the Probability Density Function of Returns (PDF) for the selected Calculation Period (defined by the Statistical Look-back Period selector). This PDF graphically represents the estimated likelihood of different daily return outcomes within that historical period. For user convenience, the X-axis of this PDF presents the estimated return, converted to price units.

Interpreting the Return PDF Chart

• Higher values (peaks) on the PDF chart indicate a greater estimated likelihood (or "density of probability") that the instrument's daily return will fall within the range represented by that peak.

• Conversely, lower values on the PDF chart suggest a lesser likelihood of returns occurring in those areas.

• The shape of the PDF provides insights into the instrument's risk and potential reward. For example, a wider, flatter PDF suggests higher volatility and a broader range of potential returns (both positive and negative), while a narrower, taller PDF indicates lower volatility and returns clustered more tightly around a central value.

As you select different instruments in the Instrument List View (on the left), all displayed information and statistics, including the PDF chart, will update automatically to reflect the newly focused instrument.

Current Day Performance

This metric dynamically provides the daily performance of an instrument.

On the provided screenshot, you'll see it labeled Return of the Most Recent Data Day.

During trading hours, it shows the intraday return from the opening price to the current moment's price. Outside trading hours, it displays the final return from the most recent completed trading day. It ensures you always see the latest relevant daily price change.

Exploring price probability

Selecting Price Probability from the View Selector reveals estimated price ranges.

Interpreting the Price PDF Chart

The top chart displays the Probability Density Function (PDF) of Prices. This shows the estimated likelihood of an instrument's price being observed within various ranges over your selected calculation period. The X-axis directly represents price units.

Higher peaks on the PDF indicate a greater estimated probability that the price was observed within that specific range. The shape of the PDF reveals volatility: a wider, flatter PDF suggests higher price volatility and a broader range of observed prices, while a narrower, taller PDF points to lower volatility and prices clustered more tightly.

By analyzing this PDF, you can directly assess potential price levels and their associated probabilities based on historical data.

Current Day Candle

Also displayed on the top chart is the Current Day Candle, which dynamically updates to reflect the instrument's price action:

• During active trading hours: This candle shows the instrument's real-time price action from its opening price to the current moment, updating continuously.

• Outside trading hours: The candle will represent the full price movement of the last completed trading day.

Sharpe Map

The Sharpe Map stands as the most powerful analytical tool within SharpeRatioView, offering a unique perspective on financial instruments.

Overview of Sharpe Map

This feature provides a 2D scatter plot that visually represents the risk-reward profiles of multiple instruments. Each dot on the map corresponds to an individual instrument loaded from your Instrument List View. The axes are designed using log-returns for normalization and consistency across different instruments:

• The Y-axis represents the estimated mean of the log-return, indicating the average logarithmic return.

• The X-axis represents the estimated standard deviation of the log-return, which quantifies the volatility or risk associated with that log-return.

This visualization allows you to quickly compare how all selected instruments balance their risk and return in a single, intuitive view.

Map Navigation Tools

When in Sharpe Map mode, use these tools to easily navigate and analyze your instrument data:

• Zoom In: Magnifies the view for closer inspection.

• Zoom Out: Widens your perspective to see a broader range of instruments.

• Reset Zoom: Instantly returns the map to its default, full-view.

• Pan Mode: (✋ hand icon) Click this button to enter Pan Mode. You can then click and drag your mouse to move the map freely. The mode automatically returns to normal after you release the mouse button, ready for other interactions.

Resources

Support: https://sharperatioview.app/Support.html

EULA: https://www.apple.com/legal/internet-services/itunes/dev/stdeula/

Privacy Policy: https://sharperatioview.app/Privacy_Policy_for_SharpeRatioView.html

App Store Link: https://apps.apple.com/il/app/sharperatioview/id6744844031?mt=12