Trading Mode

Risk Management

About Kelly Criterion

1/4 Kelly (0.25) is the recommended default for sustainable growth. Full Kelly (1.0) maximizes long-term growth but causes extreme volatility with 50%+ drawdowns. Quarter Kelly typically results in 10-15% max drawdowns while still capturing most of the growth.

Edge requirement: No trades are placed unless our probability estimate exceeds the market price. This is the single most important discipline for profitability.