4mherewego
Full Member
***
Offline Offline

Activity: 220
Merit: 100



View Profile Personal Message (Offline)

Ignore
June 12, 2013, 11:04:25 AM

Can someone please explain to me how the Kelly Criterion applies to cryptotrading, e.g. BTC on BTC-E

http://www.youtube.com/watch?v=IyATmCJf4fc

The formula is there, but how do I apply it?

Kelly Criterion is mainly useful when you can estimate the expected value of the investment which you can't with bitcoins.