Kelly Criterion For Position Sizing Credit Spreads
Stock Market Options Trading
The Kelly Criterion Is an Al Output of Those Factors
i recently posted a newer short term strategy over on patrion.com to come up with the kelly criterion so we can see how many contracts we want to trade. The formula is, you're going to take your expected return, in this case, they are multiple, and that could be a decimal number, it could be a one point something number. You need your probability of winning, your win rate, and you you need your loss rate. Once you get that %, you then multiply by your existing account balance, which will change over time with your strategy. So let's do ocratic spread example. This is a five wide s p x put credit spread. It
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