
Kelly Criterion For Position Sizing Credit Spreads
Stock Market Options Trading
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How Many Contracts Should I Allocate to a Credit Spread Strategy?
When you find the strategy you want to trade, you need to determine how much of your account you want to allocate to that strategy. The second thing you need to know is the expected return of the trade. This is where the r multiple comes in. And typically what you wuld do as you divide your profit divided by the amount you're risking.
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