The Portfolio Ranking section within the Portfolio Builder settings allows users to specify the criteria for ranking the constructed portfolios. By defining a ranking parameter, users can prioritize portfolios based on their performance or risk-adjusted returns, ensuring that the best-performing portfolios are highlighted.

Portfolio Ranking

Parameter

Description: This setting specifies the parameter used to rank the built strategies. The chosen parameter determines how portfolios are evaluated and prioritized in the optimization process.

• Options:

  • Net Profit: The total profit generated by the portfolio.
    
    
  • Profit Factor: The ratio of gross profit to gross loss, indicating the profitability of the portfolio relative to its losses.
    
    
  • Return to Maximum Drawdown Ratio: A measure of the return generated by the portfolio relative to its maximum drawdown, indicating the risk-adjusted return.
    
    

• Purpose: By selecting the appropriate ranking parameter, users can focus on the aspect of performance or risk that is most important to them. This helps in identifying the portfolios that best meet their investment objectives.
  
  

• Use Case: Choose the ranking parameter based on your specific goals. For instance:
  
  

  • Net Profit: Select this if your primary goal is to maximize absolute returns.
    
    
  • Profit Factor: Choose this if you want to prioritize portfolios with a high profitability relative to losses.
    
    
  • Return to Maximum Drawdown Ratio: Opt for this if you are focused on achieving a high return relative to the risk of significant drawdowns.

Summary

The Portfolio Ranking section in the Portfolio Builder settings is critical for determining the criteria by which portfolios are evaluated and prioritized. By selecting a ranking parameter such as Net Profit, Profit Factor, or Return to Maximum Drawdown Ratio, users can ensure that the optimization process focuses on the most relevant performance or risk metric. This helps in highlighting the portfolios that best align with the user's investment goals and risk tolerance.