TY - JOUR T1 - Optimal Leverage in Day Trading JF - The Journal of Trading SP - 57 LP - 68 DO - 10.3905/jot.2018.13.2.057 VL - 13 IS - 2 AU - Christian Lundström Y1 - 2018/03/31 UR - https://pm-research.com/content/13/2/57.abstract N2 - 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 ER -