Kelly betting

[segutor]

Has anyone actually used it with success for swing trading?

 

[trendie]

You might want to elaborate on what you understand to be "Kelly betting", so we know the context of the question.
Or some link to a document that describes its characteristics.

 

[segutor]

You might want to elaborate on what you understand to be "Kelly betting", so we know the context of the question.
Or some link to a document that describes its characteristics.

Kelly criterion - Wikipedia, the free encyclopedia

 

[Lodian32]

Not heard his name mentioned for a while, I read Fortunes Formulas by William Poundstone when I was 15, I think its a massively underrated book. It goes into Kelly quite a bit,

So you mean do people trade risking only 2% of their capital at a time?
This would be extremely limiting on a small account, and in high risk ventures like futures I think you would be struggling to hold any position for any length of time.

Lodian

 

[NVP]

nothing wrong with 2% per trade all........especially in the early stages of trading

N

 

[Lodian32]

Oh its a good way to stay alive.
Depending on your starting capital though , I think it would be suited to ventures such as FX and micro futures.

I mean say your doing the ES and you put 5kusd in, you can't lose more than 100$ on any position or you have to liquidate it, thats 2 points. So maybe as a scalping strategy it could work I guess....

Lodian