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How can Kelly’s formula help manage risk and improve trade position sizing?
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I’ve always struggled with managing my risk properly. I either played it too safe and missed out on gains, or I risked too much and wiped out my profits. A trading buddy from the USA recommended learning about kellys formula, and I finally took the time to understand it. The formula showed me how to size my trades based on probability rather than guessing. Now, I’m more confident in my position sizing, and my bankroll is actually growing instead of fluctuating wildly.
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