ELI5: Explain Like I'm 5

Calmar ratio

Okay, kiddo, let me tell you about something called Calmar Ratio. It's a fancy way to measure how much money somebody is making compared to how much risk they take. Imagine it like this: you have a big jar of candy, and you want to decide if you should trade some of that candy for a chance to get even more candy. If you take too many risks, you might end up with less candy than you started with. But if you take too few risks, you might miss out on the chance to get even more candy. The Calmar Ratio helps people figure out how much risk to take and how much candy they might get in return. It looks at how much money someone makes over time, and how much money they've lost during bad times. It's like a report card for how good someone is at managing risk. Just remember, the Calmar Ratio helps people decide how much candy to trade, but it's always important to remember that not all risks are worth taking!