/biz/ - Business & Finance

>>23144134
>Why don't you just ask the master?
Noted.
Is this your post in pic related?
>I know all about kelly criterion
Yee, so my next ambition is as follows:
What I’ve liked lately that made lots of cash in COVID was buying cheapies via stocking up on SPXL...
I did that progressively more at 10%-20% down.
I would also like to do this at the 5% down mark (but obviously can’t all in due to the risk of it turning into a 10% or 20%)
So, I want to use Kelly criterion for sizing in my allocation...
W = stops at 5% down
L = turns into correction or bear market

Uuuuuuuugggggghhhh
I know I need to learn this fucking Kelly criterion shit, but it’s fucking hard to fully figure out.
What if the loss scenario isn’t a complete wipe-out?
I want to apply this for allocation decision on swapping SPY/SSO shares out for SPXL on a 5% or 10% loss, with the loss scenario being that the correction turns into a bear market

>>23137223
>i want it to be scientific and mathematical
/smg/ hates math. Here's a theory I made up though if you're interested. I plan on using it to identify opportunities to buy debit spreads.