Even if $LFIN were to delist or go to 0, I'm still only down about about 2% of my trading capital in the face of an absolute disaster, and I typically risk about 1% on every trade anyway. This is why strict risk management is king. If not, this could have been WAY worse for me.
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Replying to @nicodagosta4
You should look into Kelly criterion. Dosage is a tough balance and I’ve found a half or three quarter Kelly bet
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Replying to @Ahimsa_Satya_
Kelly only works when the upside, downside, and probabilities of success are failure are known. None of these things are known in trading, so I find it's better to stick with a very consistent risk level than to adjust every trade.
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Replying to @nicodagosta4
Ed Thorpe and Taleb seem to do fine, most successful traders use an implicit version of it and it works great for me so far. The probabilities can be Bayesian and estimated based off past performance but yeah I get underbetting is better than blowing up.
12:24 PM - 6 Apr 2018
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