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Re:Are You Trading or Gambling? by oh_sigh on Saturday February 27, 2021 @05:59AM (#26284011)
Yes...bet sizing is something I worry about a lot, but it isn't clear to me how to apply the kelly criterion to a game where the risk/reward is mostly unknown and only based on a hunch.
Re:Are You Trading or Gambling? by hgjnhikn on Saturday February 27, 2021 @09:38AM (#26285110)
You could make a table where row is guessed probability(input to Kelly criterion) and column it's actual probability and cells contain expected value and expected log value. And pick something which looks reasonable.
Re:Are You Trading or Gambling? by scribu on Saturday February 27, 2021 @06:08AM (#26284052)
One better-than-nothing way is to look at historical data:

Looking at the closing price for each trading day, count how many times the stock ended higher and how many times it ended lower than the previous day.

Then you have your odds.