Position sizing

2 stories tagged Position sizing on Learning Fanatic.

Lesson 11.1: Position sizing and risk budgets How much to bet matters as much as what to bet on: volatility targeting, the Kelly fraction, risk contributions and risk parity, with simulations you can run.
Lesson 2.1: Probability, expected value and the Kelly idea Learn expected value, variance and the law of large numbers, then the Kelly fraction: how much to bet when you have an edge, and why half Kelly is safer.