Position Sizing: Fractional Kelly in Practice

📅 2026-08-12 · SmartQuant Academy

TL;DR: TL;DR: Full Kelly maximizes growth but risks ruin. Use fractional Kelly (25-50%) with edge estimates, and always cap single-position risk below 2%.

❓ FAQ

What Kelly fraction should I use?

25-50% of full Kelly. Full Kelly is for people who can be wrong and survive.