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Widely used in the gambling community for sizing bets, the Kelly Strategy has proven to be an effective money-management tool for trading stocks.

Developing a viable trading strategy requires an effective money-management technique to maximize the long-term geometric wealth of a trading strategy. The strategy must have positive risk-adjusted expectancy for any money management to be additive. Kelly Criterion, a strategy has a positive expectancy will maximize the geometric growth in returns through the re-investment of profits or trade-to-trade compounding of returns. The Strategy defines a fixed fraction of capital to invest in each trade and is based on the

expectation (probability) of long-term capital growth.

Additional controls incorporated into the Kelly Calculator allow the user to vary the degrees of risk and return with built-in filters. Each strategy is automatically backtested to determine the best equity curve.

Trade Setup - Buy, Sell and Stop Limits and number of shares

Kelly % - Fixed percentage of capital

Capital Allocation - Fixed fraction of capital

Trade Quality - Positive trade percentage

Best Filter - The filter that produces the best geometric growth

Best Indicator - The Moving Average that produces the best gain

Transactions - The number of Buy’s

Trades - The number of completed trades

Win-Loss Ratio - The Average Wins divided by the Average Losses

Annualized ROI - Rate of return for a given period that is less than one year

Proceeds - Period sales less expenses

Trade Expectancy - Expected period return

Profit - The period profit

Holds - Transactions not sold

Stop Loss - Stop limit sales

Premium or Discount Purchase - Purchase above or below the pivot point price

Gain - The expected transaction gain

Initial Risk - The potential loss

Developing a viable trading strategy requires an effective money-management technique to maximize the long-term geometric wealth of a trading strategy. The strategy must have positive risk-adjusted expectancy for any money management to be additive. Kelly Criterion, a strategy has a positive expectancy will maximize the geometric growth in returns through the re-investment of profits or trade-to-trade compounding of returns. The Strategy defines a fixed fraction of capital to invest in each trade and is based on the

expectation (probability) of long-term capital growth.

Additional controls incorporated into the Kelly Calculator allow the user to vary the degrees of risk and return with built-in filters. Each strategy is automatically backtested to determine the best equity curve.

Trade Setup - Buy, Sell and Stop Limits and number of shares

Kelly % - Fixed percentage of capital

Capital Allocation - Fixed fraction of capital

Trade Quality - Positive trade percentage

Best Filter - The filter that produces the best geometric growth

Best Indicator - The Moving Average that produces the best gain

Transactions - The number of Buy’s

Trades - The number of completed trades

Win-Loss Ratio - The Average Wins divided by the Average Losses

Annualized ROI - Rate of return for a given period that is less than one year

Proceeds - Period sales less expenses

Trade Expectancy - Expected period return

Profit - The period profit

Holds - Transactions not sold

Stop Loss - Stop limit sales

Premium or Discount Purchase - Purchase above or below the pivot point price

Gain - The expected transaction gain

Initial Risk - The potential loss

Sharpe Ratio Free

Free

Increase profitability by achieving the largest return per unit of risk.

The Sharpe Ratio has become one the most widely used investment ratios for measuring risk or return. Composed of only three components, the formula establishes a relationship with any Risk-Free investment for comparing the returns. Higher ratio's result in a higher excess return and greater profitability.

The Sharpe Ratio and Excess Return is automatically calculated over a 6-month period using historical data with the following modes:

1. All - Buy-Sell the security each day for 6-months with no regard to the quality of the transaction.

2. Technical Indicators - Automatically finds the best gain for each transaction.

3. Fixed Gain - The gain is the same for each transaction.

4. Technical Filters - Uses selective filter criterion to filter potentially risky buys.

5. Turbo - An aggressive risk based filter to eliminate remaining holds and stops.

A trading statement is produced for each Buy-Sell Signal specifying the number of shares, purchase price limit, sell price limit and stop price limit.

Additional data for the 6-month period is:

1. Number of Transactions

2. Number of completed

3. The Standard Deviation associated with the Sharpe Ratio

4. Annualized

5. Gross Proceeds

6. Trade Expectancy

7. Gross Profit

8. Gross Holds

9. Gross Stops...

Free

Increase profitability by achieving the largest return per unit of risk.

The Sharpe Ratio has become one the most widely used investment ratios for measuring risk or return. Composed of only three components, the formula establishes a relationship with any Risk-Free investment for comparing the returns. Higher ratio's result in a higher excess return and greater profitability.

The Sharpe Ratio and Excess Return is automatically calculated over a 6-month period using historical data with the following modes:

1. All - Buy-Sell the security each day for 6-months with no regard to the quality of the transaction.

2. Technical Indicators - Automatically finds the best gain for each transaction.

3. Fixed Gain - The gain is the same for each transaction.

4. Technical Filters - Uses selective filter criterion to filter potentially risky buys.

5. Turbo - An aggressive risk based filter to eliminate remaining holds and stops.

A trading statement is produced for each Buy-Sell Signal specifying the number of shares, purchase price limit, sell price limit and stop price limit.

Additional data for the 6-month period is:

1. Number of Transactions

2. Number of completed

3. The Standard Deviation associated with the Sharpe Ratio

4. Annualized

5. Gross Proceeds

6. Trade Expectancy

7. Gross Profit

8. Gross Holds

9. Gross Stops...

Kelly Strategy Free

Free

Widely used in the gambling community for sizing bets, the Kelly Strategy has proven to be an effective money-management tool for trading stocks.

Developing a viable trading strategy requires an effective money-management technique to maximize the long-term geometric wealth of a trading strategy. The strategy must have positive risk-adjusted expectancy for any money management to be additive. Kelly Criterion, a strategy has a positive expectancy will maximize the geometric growth in returns through the re-investment of profits or trade-to-trade compounding of returns. The Strategy defines a fixed fraction of capital to invest in each trade and is based on the

expectation (probability) of long-term capital growth.

Additional controls incorporated into the Kelly Calculator allow the user to vary the degrees of risk and return with built-in filters. Each strategy is automatically backtested to determine the best equity curve.

Trade Setup - Buy, Sell and Stop Limits and number of shares

Kelly % - Fixed percentage of capital

Capital Allocation - Fixed fraction of capital

Trade Quality - Positive trade percentage

Best Filter - The filter that produces the best geometric growth

Best Indicator - The Moving Average that produces the best gain

Transactions - The number of Buy’s

Trades - The number of completed trades

Win-Loss Ratio - The Average Wins divided by the Average Losses

Annualized ROI - Rate of return for a given period that is less than one year

Proceeds - Period sales less expenses

Trade Expectancy - Expected period return

Profit - The period profit

Holds - Transactions not sold

Stop Loss - Stop limit sales

Premium or Discount Purchase - Purchase above or below the pivot point price

Gain - The expected transaction gain

Initial Risk - The potential loss...

Free

Widely used in the gambling community for sizing bets, the Kelly Strategy has proven to be an effective money-management tool for trading stocks.

Developing a viable trading strategy requires an effective money-management technique to maximize the long-term geometric wealth of a trading strategy. The strategy must have positive risk-adjusted expectancy for any money management to be additive. Kelly Criterion, a strategy has a positive expectancy will maximize the geometric growth in returns through the re-investment of profits or trade-to-trade compounding of returns. The Strategy defines a fixed fraction of capital to invest in each trade and is based on the

expectation (probability) of long-term capital growth.

Additional controls incorporated into the Kelly Calculator allow the user to vary the degrees of risk and return with built-in filters. Each strategy is automatically backtested to determine the best equity curve.

Trade Setup - Buy, Sell and Stop Limits and number of shares

Kelly % - Fixed percentage of capital

Capital Allocation - Fixed fraction of capital

Trade Quality - Positive trade percentage

Best Filter - The filter that produces the best geometric growth

Best Indicator - The Moving Average that produces the best gain

Transactions - The number of Buy’s

Trades - The number of completed trades

Win-Loss Ratio - The Average Wins divided by the Average Losses

Annualized ROI - Rate of return for a given period that is less than one year

Proceeds - Period sales less expenses

Trade Expectancy - Expected period return

Profit - The period profit

Holds - Transactions not sold

Stop Loss - Stop limit sales

Premium or Discount Purchase - Purchase above or below the pivot point price

Gain - The expected transaction gain

Initial Risk - The potential loss...