Recently, I learned about the Kelly Criterion through study, so often I have to look beyond technical analysis to find solutions.

The Kelly Criterion is a method for managing bet sizing, where the bet size is high when the mathematical expectation is good or the edge is significant, and smaller when the expectation is slightly less favorable.

Applying the Kelly Criterion in conjunction with mathematical expectation is the wedge trading model I aim to adopt in the future.

Many quantitative investment institutions use the Kelly Criterion; when the mathematical edge is large, the bet size is high, and when the mathematical edge is small, the bet size is low. My past management method was to use a uniform position for all trades, which led to a poor performance curve. In the last 7 days of February, I lost all profits from January to February back to the starting point, and it was also at this time that I learned more things. Although I lost money, this wave was actually not a loss...

This wave mainly optimized position management, and then re-executed. The first phase goal is to break even.