Marc De Mesel: Respecting The Kelly Criterion

  • Wednesday, 17 April 2019 11:28
Due to HODL infection, mass bullishness, or expecting higher prices many, me included, failed to sell to minority share around top. Suffering from FODL, mass bearishness or just expecting lower prices may cause many, me as well, fail to go to majority exposure around bottom. Therefore I must respect the Kelly criterion that says you should increase your bet size if risk/reward improves (when prices go down), and reduce bet size when risk/reward declines (when prices go up). Ofcourse you need to ride it too, so you only start selling when you reached serious overvaluation on Trololo chart and only start buying when you reached serious undervaluation. But you should start strong and go to minority or majority immediately as you never know how high or low it will go, you may well have reached the top/bottom already the moment u reach serious over or undervaluation. But if not, you continue to scale down, or scale up as higher or lower prices are reached. That is a winning strategy. Links: Checking track records: https://twitter.com/marcdemesel/status/1118073037264494592 Trololo Chart: https://twitter.com/marcdemesel/status/1114145360086171648

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