PT  - JOURNAL ARTICLE
AU  - Christian Lundström
TI  - Optimal Leverage in Day Trading
AID  - 10.3905/jot.2018.13.2.057
DP  - 2018 Mar 31
TA  - The Journal of Trading
PG  - 57--68
VI  - 13
IP  - 2
4099  - https://pm-research.com/content/13/2/57.short
4100  - https://pm-research.com/content/13/2/57.full
AB  - Day traders are likely to use leverage to increase their profits. This article systematically analyzes the effect of leverage on profit when using a popular day-trading strategy and clarifies the relation to two optimal leverage strategies proposed for maximizing trading profit: the Kelly criterion and the optimal fraction criterion. The author’s empirical analysis shows how leverage can increase the profit in day trading.TOPICS: Statistical methods, performance measurement