🚨 INSIGHT: Sharpe Ratio signals a potential bottom
The Sharpe Ratio doesn’t pinpoint exact market bottoms — but it highlights when risk-reward has fully reset, a zone that has historically preceded major upside moves.
KEY POINTS:
• Low Sharpe = returns compressed vs volatility $NOM
• Indicates capitulation-level risk pricing
• Past occurrences often came before strong rallies $DUSK
WHY IT MATTERS:
• Suggests downside may be largely priced in
• Helps frame asymmetric opportunity, not timing $ALLO
• Aligns with smart-money accumulation behavior
BOTTOM LINE:
You Don’t Need The Exact Bottom.
When Sharpe Resets, Risk-Reward Starts Favoring The Patient.
