good points.Kelly not all about preserving capital.I also use...

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togakure

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09/06/24

14:10

Post #: 74236740
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Originally posted by Ibza: ↑

Thanks Malaga. The 100% is because my current capital is a smaller amount. I probably wouldn't go 100% if I had more and would have at least 2 holdings. I do think diversification is important, but also not so much that you can't remember why you have 10 stocks. The less you have the more you can monitor and analyse them, control them and make money. I think around 2 to 4 is a happy medium for short-term trading. For longer term it's okay to have more because you essentialy set up the trade, forget it and let it either meet its stop loss or price target.

I definitely do take trading seriously and as a business. I jest for the purposes of hotcopper but also if I set my expectations "to the moon" and reach for the stars, I would be stoked. I check setups, analyse charts 24/7 and have been doing it for years. This has led me to understand that certain patterns are highly predictable based on their nature. I'm in THB at the moment which has great potential.

One of the most important factors of trading is definitely win big and lose small as you guys mention, but the win rate is also important. The win rate shows you how your current trading method is working. If it's not working then even if you lose small, you could be losing small all the way to $0. This is where a method such as the Kelly will at least preserve your capital while you get your trading method better.
One thing I've been doing lately is writing down in a Journal about the profit\loss of each trade. I've used all fancy setups and excel spreadsheets before but writing it down forces you to accept the fact that you had a loss and prevents overtrading. Planning to reinstate the spreadsheet as well next FY for the statistics.

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good points.

Kelly not all about preserving capital.

I also use Kelly as a staking tool for betting.

its all about the equity curve eg below.

As a trader i believe in tracking my performance. win rate win ratio.
How else can i get better.

Well done for understanding how this can be useful for you.

https://blog.cryptostars.is/simulating-the-implementation-of-the-kelly-criterion-with-python-f52c2d21da2d
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good points.Kelly not all about preserving capital.I also use...

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good points.Kelly not all about preserving capital.I also use...

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