Academy course material · Trading Risk Management
Text walkthrough
Kelly Formula Explained
A self-paced text walkthrough, without video or audio. See the article below for worked examples and materials.
Course Notes
In "Trading Risk Management" → "Kelly and Expectancy", this lesson "Kelly Formula Explained" builds knowledge you can apply immediately.
Kelly fraction f* = (bp − q) / b where b is reward/risk and p is win rate. Full Kelly is volatile; half-Kelly or fixed fractional sizing is common in live trading.
These points align with the video walkthrough—take notes as you watch.
After studying, complete the companion practice lesson to move from understanding to doing.
Key Takeaways
Completion records your own study, not verified competence. Exercises use fictional data; no real account or deposit is required.