The main problem of an investor is identifying profitable trading strategies. To solve this, he uses fundamental and quantitative techniques to pick winning trading systems. The next problem concerning the investor is how to optimally allocate his capital to different winning strategies. A solution is to use the Kelly formula to calculate the amount of capital he will deploy to securities or trading systems before him.

The main problem of an investor is identifying profitable trading strategies. To solve this, he uses fundamental and quantitative techniques to pick winning trading systems. The next problem concerning the investor is how to optimally allocate his capital to different winning strategies. A solution is to use the Kelly formula to calculate the amount of capital he will deploy to securities or trading systems before him.