How Does Leverage Affect Trading Returns? The Kelly Criterion | Coffeezilla Follow-up

Todays video is a follow-up to the video I did earlier this week with Steven from Coffeezilla, "The Truth About Trading Gurus". Let's look at some of the lessons that can be taken from the world of gambling that might help a trader with sizing their trades. We look at the Kelly criterion (also known as the Kelly system or Kelly formula), to see if it can provide any insights to investors. How does leverage affect trading returns? Let me know your thoughts in the comments section.

Patricks' Books:
Statistics for Traders: https://amzn.to/3eerLA0
Financial Derivatives: https://amzn.to/3kwsPSr
Corporate Finance: https://amzn.to/3fn3rvC

Visit our website: www.onfinance.org
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Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance

A reading list on this topic:
Ed Thorpe Books: https://amzn.to/3hG5gW4
Fortunes Formula by William Poundstone: https://amzn.to/2YZAr7N
When Genius Failed by Roger Lowenstein: https://amzn.to/3jhsUIW

Link to the coffeezilla video: https://www.youtube.com/watch?v=JfP4rVsmL_Q&t=2985s

Видео How Does Leverage Affect Trading Returns? The Kelly Criterion | Coffeezilla Follow-up канала Patrick Boyle