Kelly Criterion Calculator
Input your historical win rate and risk:reward ratio to calculate the mathematically optimal percentage of capital to risk per trade using the Kelly Criterion formula.
How This Tool Works
The Kelly Criterion calculates the position size that maximizes long-run capital growth given a known edge.
Kelly % = Win Rate − (Loss Rate ÷ R:R Ratio)
Where Win Rate is your fraction of winning trades, Loss Rate = 1 − Win Rate, and R:R Ratio = average win ÷ average loss.
Most traders use Half-Kelly (50% of the result) in practice — it dramatically reduces drawdowns while retaining most of the growth benefit. A negative Kelly value means your strategy has no statistical edge.
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