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Distinguishing Kelly Criterion and Optimal f by sasha_fang is a document available to read on EtoBox.

The document compares the Kelly Criterion and Optimal f for determining the optimal fraction of a stake to risk in order to maximize geometric growth. While the Kelly Criterion and Optimal f yield the same optimal fraction in a special gambling case, they are different concepts and can yield different results in most trading situations. Optimal f provides the correct optimal fraction to risk in all cases, while the Kelly Criterion only does so in the special case and can result in values greater than 1, whi

Author
sasha_fang
Language
EN