Todays video is a follow-up to the video I did earlier this week with Steven from Coffeezilla, “The Truth About Trading Gurus”. Let’s look at some of the lessons that can be taken from the world of gambling that might help a trader with sizing their trades. We look at the Kelly criterion (also known as the Kelly system or Kelly formula), to see if it can provide any insights to investors. How does leverage affect trading returns? Let me know your thoughts in the comments section.
Patricks’ Books:
Statistics for Traders: https://amzn.to/3eerLA0
Financial Derivatives: https://amzn.to/3kwsPSr
Corporate Finance: https://amzn.to/3fn3rvC
Visit our website: http://www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle
Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
A reading list on this topic:
Ed Thorpe Books: https://amzn.to/3hG5gW4
Fortunes Formula by William Poundstone: https://amzn.to/2YZAr7N
When Genius Failed by Roger Lowenstein: https://amzn.to/3jhsUIW
Link to the coffeezilla video: https://www.youtube.com/watch?v=JfP4rVsmL_Q&t=2985s
