The Kelly Grid

The Kelly Grid is a tool used to determine the optimal fraction of your capital to invest in a series of bets or trades, maximizing growth while managing risk. It visually displays the Kelly fraction—a percentage of your bankroll to wager—based on the probability of winning and the potential payout. By following the grid, investors can balance aggressive growth with safety, avoiding bets that are too risky or too conservative. Essentially, it guides you to allocate funds efficiently to improve long-term success while controlling the risk of significant loss.