RT Journal Article SR Electronic T1 Optimal Leverage in Day Trading JF The Journal of Trading FD Institutional Investor Journals SP 57 OP 68 DO 10.3905/jot.2018.13.2.057 VO 13 IS 2 A1 Christian Lundström YR 2018 UL https://pm-research.com/content/13/2/57.abstract 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