Kelly criterion calculator

The mathematically optimal risk per trade from win rate and payoff — and why to halve it.

Payoff ratio

1.50

Full Kelly

25.0%

of equity per trade

Half Kelly

12.5%

Suggested risk

5.0%

quarter Kelly, capped at 5%

How it's calculated

Payoff is average win divided by average loss. Kelly fraction is the win rate minus the loss rate divided by the payoff. Full Kelly maximises long-run growth but produces brutal drawdowns, so most traders use half or a quarter of it. A negative Kelly means the strategy has no edge and should not be traded at any size.

Everything runs in your browser — nothing is sent anywhere. Results are estimates; your broker's contract specification is the final word.

Vetting an EA? See the guide →

More calculators