Fast answer
Crypto signal Sharpe ratio claims need a real return series and volatility inputs.
Before accepting a Sharpe ratio claim, record the return series, period frequency, risk-free or benchmark assumption, volatility calculation, trade sizing, open-position treatment, fees, slippage, sample length, and whether the period was selected before the result was known.
If the provider cannot show the underlying return series and volatility calculation, do not treat the Sharpe ratio as verified signal evidence.
Sharpe checks
What to inspect in crypto signal Sharpe ratio claims.
Return series
A Sharpe calculation needs a consistent return series. Signal-by-signal screenshots are not enough.
Volatility window
Check whether volatility is measured daily, weekly, monthly, or by another interval, and whether the interval was changed to improve the ratio.
Costs and sizing
Fees, slippage, funding, leverage, and position size assumptions should match how a follower could execute the signals.
Cherry-picked periods
A favorable historical window can inflate risk-adjusted claims. Look for full-period reporting and correction notes.
Source context
Sharpe compares return with volatility, but it can be gamed.
Investopedia describes the Sharpe ratio as a way to compare return with risk using standard deviation, and also notes pitfalls such as favorable measurement periods and volatility assumptions. Crypto signal claims need those limits made visible.
Review standard
A reviewable Sharpe ratio shows the input series, not just the final number.
For CSR evidence review, a crypto signal Sharpe ratio should include the return series, time interval, benchmark or risk-free assumption, volatility calculation, position-sizing assumptions, cost treatment, sample period, and source records behind the signals.