TY - JOUR T1 - Optimal Leverage in Day Trading JF - The Journal of Trading DO - 10.3905/jot.2018.1.062 SP - jot.2018.1.062 AU - Christian Lundström Y1 - 2018/03/10 UR - https://pm-research.com/content/early/2018/03/13/jot.2018.1.062.abstract N2 - Day traders are likely to use leverage to increase their profits. This paper 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. Our empirical analysis shows how leverage can increase the profit in day trading. ER -