Should You Use The Kelly Criterion For Trading? 

Interesting way to use it! Thanks for the support.

thank you

how?

​@@ranieltaripe6443check out @matiasdonoso1089 comment here for the answer. There also some article online.

I think you can try a simple fixed fractional approach. You can adjust the % capital to risk per trade until you get a max historical % drawdown (from your backtest) that you are comfortable with.

welcome!

I presume you mean the fraction of capital to risk per trade. Ideally 1-2%

probably a buy when CCI breaks above 100, -100 for shorts

​​@@TradingTact On which time frame

@@Psycho_Nexus m30 or h1

the criterion gives you the fraction of your capital to risk per trade. You calculate your lot size using that.

@@TradingTact ok, let's say the criterion let's us risk 22% of an initial margin of 1,000USD which is about 220 dollars, what lot size would this equate to in this instance?

@@s5sixs933 that depends on what type of position sizing you use. If it's fixed fractional, insert 220 into the numerator

@@TradingTact I don't really understand what a fixed fractional is tho😅but thanks all the same. You've just gained a new subscriber 🥳🥳🥳

@@s5sixs933 no problem. Actually I wrote a blog post on money management some time ago. I talk about fixed fractional at the start: tradingtact.com/fixed-ratio-money-management/

Not sure I understand your question, but if you want to use the Kelly, you will be risking way more than 1% trade. You can't have both

@@TradingTactsorry if my english i’ts not perfect what i triying to say its that if its possible to put that Money Management in a Expert advisor, but in this way if kelly fórmula gives you 25% to risk you divide this result from 10 so the rial risk yo gonna trade is 2.5% per trade and not that 25% that i’ts a lot

​@@matiasdonoso1089why divide by 10?

thanks!