4min chapter

Stock Market Options Trading cover image

Kelly Criterion For Position Sizing Credit Spreads

Stock Market Options Trading

CHAPTER

Trade Less Than the Kelly Criterion

The kelly criterion was applied and popularized with fixed, sort of variable games like blackjack. What i would do is drop this to about ten %. I would do about a half kelly, not quite a third, but, you know, coni get a nice round number. As the account grows, your position side, sides would grow, but you're still adhering to that ten percent risk per trade.

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