Youtube clip for Kelly formula

J

jk90029

Dear-

An interesting clip was found


for a beginner lesson.

IMHO, there might be huge profit difference in equity trading, with understanding and use of the Kelly.
 
Roughly at 12 min in the above clip, he is talking about compounding / at 35 min about doubling time.
 
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Another interesting clip is


Suppose profit rate is annually 20% compounded, it takes less than 4 years by 1.2^4 = 2.0736 with extra annual dividend for equity.
 
Yes this is true if you follow kelly, you can save yourself from getting affected from the bankruptcy. And these video tutorials are also supportive in the better understanding.
 
Balliwygon said:
Yes this is true if you follow kelly, you can save yourself from getting affected from the bankruptcy. And these video tutorials are also supportive in the better understanding.
More...


Maybe, among all the strategies with NO possible bankrupcy, Kelly might be the best rewarding, in terms of long-term compounding. The book explains in detail, page 99 and page 232.

However, since Kelly does not asks margin and leverage, long-term profit is NOT as much as many traders (probably stupid 90% traders) expected.
There might be a better strategy than Kelly. If you think so, tell me now.
 
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