Definition
A risk-adjusted return measure: average profit divided by the volatility of returns. Higher is better — it rewards a record that is both profitable and steady rather than profitable but wild.
Related terms
- Variance — The luck-driven swing of results around their long-run expectation. Even +EV bettors have losing stretches from it.
- Return on Investment (ROI) — Net profit in units divided by total units staked, as a percentage. A 5% ROI means 5 units returned for every 100 staked.