Fast answer
Crypto signal Sortino ratio claims need downside-return records and target assumptions.
Before accepting a Sortino ratio claim, record the return series, target or risk-free assumption, downside-deviation method, sample period, open losses, drawdown periods, fees, slippage, leverage, position sizing, and source records.
If downside deviation, target return, return series, open losses, and costs are not visible, the Sortino ratio is not reviewable proof.
Sortino checks
What to inspect in crypto signal Sortino ratio claims.
Downside definition
The provider should define which returns count as downside and what target or threshold is used.
Open-loss handling
Unclosed positions and floating drawdown can change downside risk. They should not be hidden from the calculation.
Costs and leverage
Downside deviation should reflect fees, funding, slippage, margin mode, leverage, and realistic follower sizing.
Comparable periods
Sortino should be compared across similar periods and strategies, not mixed between backtests, paper records, and live signals.
Source context
Sortino focuses on downside risk, not all volatility.
Investopedia explains the Sortino ratio as a variation of Sharpe that uses downside deviation instead of total standard deviation. For crypto signal reviews, that means the downside-return data and target assumption must be visible.
Review standard
A reviewable Sortino ratio shows how downside was counted.
For CSR evidence review, a crypto signal Sortino ratio should include the return series, target-return assumption, downside-deviation method, open-loss handling, fee and slippage assumptions, sample period, leverage and sizing rules, and source signal records.