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trades: add note on Kelly bet for biden term trade
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max-niederman committed Jan 20, 2025
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Expand Up @@ -31,9 +31,12 @@ I purchased 20 shares at an average price of 91.6¢, for a total of $18.28 befor
I think my entry was fine although I probably could have stood to
spend some more time and effort on my bet sizing.
This was an extremely good price which I mostly didn't take advantage of,
and in the future I should at least spend some time estimating what the [Kelly bet](https://en.wikipedia.org/wiki/Kelly_criterion) would be.
and in the future I should at least spend some time estimating what the [Kelly bet](https://en.wikipedia.org/wiki/Kelly_criterion) would be.[^kelly_bet]
On the other hand, I don't want to go overboard and end up essentially just gambling.

[^kelly_bet]: In this case, the 99% forecast earlier results in a Kelly bet of just under 89% of the available bankroll.
I would of course not be this confident given my surprise at the price in the first place.

My exit was similarly not great.
I set a sell limit order for half my shares at 98¢,
but on reflection I realize that there was no principled reason for this:
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