Hat Trick Unpredictable Episode 4 Full of Dry Goods💣

Continued from the previous episode, please watch patiently

In our actual application, it is not calculated in this way, because the Kelly formula calculates a limit value. When actually trading, there will be many uncontrollable factors affecting it, and we must also consider the drawdown of our own account. In fact, the maximum drawdown we want to control is the amount we can lose. Assuming that I set 30% as the maximum drawdown ratio, I should use 60,000 to calculate the betting ratio, that is, 60,000 multiplied by 12.7% equals 7620. The second step is to calculate the amount of loss for each hand. Here, the entry is 9030 and the stop loss is 8930. The stop loss range is 100 points. The point value of the styrene contract is 5. If the stop loss is set, the amount of loss for each order is equal to the stop loss range multiplied by the point value of the contract, which is equal to 500. The third step is to calculate the number of hands that can be ordered. The amount of loss for this transaction is 7620, and the number of hands that can be ordered is equal to the total amount of loss, 7620, divided by the amount of loss for each hand, 500=15.24. So according to the Kelly formula, the total number of lots that can be ordered for this transaction is 15 lots. The above is the application of the Kelly formula in the trading process. It is important to understand the prerequisites for using the Kelly formula before applying it. The Kelly formula is only applicable to independent and repeated time, and there must be large sample statistical data. In the process of use, it is also necessary to trade in a quantitative way with loss. Of course, after listening to the overall content, you may feel that the whole process of so many calculations is very complicated, and so many calculations are required for the next order, but this way of applying the Kelly formula is more reasonable and effective. As for the cumbersome steps, in fact, understanding the principles and knowing how to apply the formula are fixed steps. Although complicated, we can use tools to directly help us calculate the results, greatly reducing the cost of our energy and time. We should do correct and effective things when trading, not just simple things. You can click me to follow, click my avatar to find me at any time, and there are exchanges on all contract spot gameplay! ! #ETFvsBTC #5月市场关键事件 #美国4月CPI数据回落 #Meme币你看好哪一个？ GameStop drives the Meme sector #BTC走势分析