The Kelly Criterion

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sodaTab
Posts: 6
Joined: Tue May 01, 2018 7:45 pm

The Kelly Criterion

Post by sodaTab » Tue May 01, 2018 7:54 pm

I believe that the Kelly criterion is something everyone should know. If you use this with a positive win/loss strategy, you'll be bound to make a profit in the long run.

Below is an article that I thought explained its usage well.
https://www.forexboat.com/kelly-criterion/
Last edited by sodaTab on Mon May 07, 2018 3:41 pm, edited 1 time in total.

Revensi
Posts: 3
Joined: Mon May 07, 2018 10:57 am

Re: The Kelly Criterion

Post by Revensi » Mon May 07, 2018 11:29 am

Nice article, but I'm not sure if I should use a full K or a half K.

sodaTab
Posts: 6
Joined: Tue May 01, 2018 7:45 pm

Re: The Kelly Criterion

Post by sodaTab » Mon May 07, 2018 11:41 am

It depends on how much risk your willing to take. The half Kelly is a safer bet especially if your just starting out.

sodaTab
Posts: 6
Joined: Tue May 01, 2018 7:45 pm

Re: The Kelly Criterion

Post by sodaTab » Mon May 07, 2018 2:31 pm

This calculator will take care of the equation for you after you've found your win/loss ratio.
http://www.albionresearch.com/kelly/

BeHigh
Posts: 7
Joined: Mon May 07, 2018 10:56 am

Re: The Kelly Criterion

Post by BeHigh » Mon May 07, 2018 3:46 pm

Revensi wrote:
Mon May 07, 2018 11:29 am
Nice article, but I'm not sure if I should use a full K or a half K.
I don't see why you wouldn't just use a full k.

XanTalent
Posts: 5
Joined: Mon May 07, 2018 10:47 am

Re: The Kelly Criterion

Post by XanTalent » Fri May 25, 2018 9:58 pm

BeHigh wrote:
Mon May 07, 2018 3:46 pm
Revensi wrote:
Mon May 07, 2018 11:29 am
Nice article, but I'm not sure if I should use a full K or a half K.
I don't see why you wouldn't just use a full k.
From the article:
"it halves your risk but the long-term return only goes down by 25%."

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