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Ep. 22: Mike Aponte Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Kelly Formula for Good Money Management

The Kelly formula is where good blackjack strategies derive from, it's from where good betting strategy and trading is derived from. So the Kelly criterion in order to maximize your long term gain, then you would bet a percentage of your capital or bankroll that's equal to your advantage at that point in time. Now, doing that will maximize your expected value, your expected win, but it's also going to create some pretty huge swings. For example, if you bet a full Kelly, there's over 50% chance that you're going to lose more than half your bankroll at some point.

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