72lab
Sign up free
Trading glossary

What is Kelly criterion?Kelly Criterion

The bet size that grows wealth fastest over time: win rate − loss rate ÷ payoff ratio; traders often use half of it to reduce swings.

Learn “Kelly criterion” in an animated lesson

Related terms

See how “Kelly criterion” works for yourself with an animation you can drag and play.

Go to “The Kelly Criterion: How Much to Bet”
What is Kelly criterion (Kelly Criterion) · 72lab