Risk free rate in Sharpe for a strategy

how should I take into account the risk free rate while calculating the Sharpe ratio of a strategy that was backtested over 15 years of data?

If I consider the risk free rate as of today i.e. ~6.5% then that would not be a good way to go about it. Any suggestions will be helpful.

Thanks

There is no right way to consider this.

you could take the average or weighting average over the past data.

1 Like