Bet Sizing

Handles position sizing calculations from Kelly criterion to risk budgeting. You'll reach for this when deciding how much capital to put in a single position, whether you're sizing a concentrated portfolio or allocating a VaR budget across trades. It covers both discrete bets (binary outcomes with known odds) and continuous investments (normal distributions), plus practical adjustments like fractional Kelly since full Kelly tends to be way too aggressive in practice. The formulas are here for volatility scaling, conviction weighting, and liquidity-based limits. Honestly most useful for the worked examples that show why half Kelly achieves 75% of the growth with dramatically lower drawdowns, which is the kind of practical insight that actually changes how you size positions.

Install to Claude Code

npx -y skills add joellewis/finance_skills --skill bet-sizing --agent claude-code