The Kelly Criterion

The Kelly Criterion is a formula used to determine the optimal trade size to maximize long-term growth. It weights your win rate against your average win/loss ratio.

Warning

Pure Kelly sizing is notoriously volatile. Most professional traders use "Fractional Kelly" (e.g., 0.25 * Kelly result) to lower the swings.

FAQ

Is it for day trading?

Yes, it's a sizing methodology regardless of the timeframe.

What if I don't know my win rate?

You shouldn't be scaling aggressively until you do.

How does it fit MixFunded?

Use it to size trades to stay well under the 3% daily drawdown limit.

Can I use it on every trade?

It's better applied as a general rule for your risk per trade.

Comece por $5

Start for $5, pay $150 only after passing. 10% target, 3% daily / 8% max drawdown, no time limit, weekly USDT rewards.

Start Now

Relacionados

Continue lendo.

Risco de Ruína

Avoid bankruptcy.

Drawdown Recovery

Getting back on track.