Here is my opinion of CAPM and Sharpe Ratio while you research your potential profitable quant trading strategy
I am no expert but I do believe CAPM is really decent for finding beta. That is about it.
Sharpe ratio is an industry standard to find the performance on your trading strategies.
More info on the function from Matlab from:
NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!