Risk and Volatility: Indicators Investors Need to Know

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In recent years, Quant Trading - quantitative trading - has emerged as one of the most attractive fields in finance. Unlike the image of investors holding phones placing orders based on gut feelings, traders in this field use mathematics, programming, and data to make trading decisions.

But to step into that world - whether at a professional or personal level - you need to master one fundamental thing: investing is not just about returns, but also the story of risk.

To measure that objectively, indicators evaluating the correlation between performance and risk are indispensable. In this article, Viet Hustler will explore with you the 5 most important indicators to evaluate investment performance scientifically and practically:

• Sharpe ratio

• Sortino ratio

• Alpha

• Beta

• Maximum drawdown

These are not just analysis tools, but also the compass for investors to build a smart and sustainable long-term investment strategy.