Kelly criterion trading: the formula and why you should use less
The Kelly criterion gives the optimal bet size from your win rate and payoff. Here is the formula, a worked example, and why full Kelly ruins traders.
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Practical guides on trading journals, prop firm rules, trading psychology, and the math behind profitable trading. Written for serious traders.
The Kelly criterion gives the optimal bet size from your win rate and payoff. Here is the formula, a worked example, and why full Kelly ruins traders.
R-multiples express each trade as a unit of risk, normalizing your journal across position sizes and turning expectancy into something usable.
Most traders chase a high win rate and end up unprofitable. The truth is in the math, and it's simpler than you think. Here's how win rate, risk-reward, and expectancy fit together.