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Primarily, it�s useful stock capital, where in fact the tiny fraction based on money is based on easy qualities which are easily estimated off present historical studies � requested worthy of and you may difference. These two rates off Kelly tiny fraction appear somewhat reasonable, yet a prudent strategy highly recommend a much deeper multiplication from Kelly ratio by the fifty% (we.e. half-Kelly).
An easy way to counter the fresh new unknown exposure would be to invest shorter versus Kelly criterion
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