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Get Good And Bad Properties Of The Kelly Criterion
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- Click the ‘Get Form’ button to access the document and open it in your online editor. This step will allow you to view the form layout and the fields required for completion.
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- Review the section regarding the good properties of the Kelly criterion. Carefully read through this information, and take note of the points that resonate with your understanding of the topic.
- Proceed to the section detailing the bad properties of the Kelly criterion. Here, summarize your views on each point and provide any applicable examples or personal experiences.
- If applicable, fill in the observation section, discussing any additional insights or reflections you have regarding the use of the Kelly criterion in investment strategies.
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There are two basic components to the Kelly Criterion. The first is the win probability or the probability that any given trade will return a positive amount. The second is the win/loss ratio. This ratio is the total positive trade amounts divided by the total negative trade amounts.
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