A formula that calculates the optimal bet size based on your edge and the odds.
A formula that calculates the optimal bet size based on your edge and the odds. It tells you what percentage of your portfolio to risk on a single trade to maximize long-term growth. Most traders use a fraction of the Kelly amount because the full Kelly is too aggressive for most people's risk tolerance.
Determining how much of your portfolio to allocate to a single trade based on your risk tolerance and the trade's risk/reward profile.
Strategies for limiting potential losses in your investments.
The relationship between your potential loss and potential gain on a trade.
A period when smart money quietly buys up an asset before a major price move.
The average yearly return on an investment, calculated to account for compounding.
Profiting from price differences of the same asset across different markets.
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