Ive read about this. I actually need to look more into this.
Hi, I am using the Kelly Criterion to help me determine how much risk I should take in each trade, according to my win/loss ratio and winning probability (based on my track record). A concise and well written explanation of the method may be found here: http://www.investopedia.com/articles...#axzz1bycGZb51 I have created an Excel spreadsheet that plots the expected % Payoff on each trade against the % Capital at risk according to the criterion. I know that taking the optimum risk pointed out may not be the best choice,...
Just joking.
