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Kelly Criterion: Why You SHOULD Use Leverage — And By How Much

By Henrique Centieiro · Published April 23, 2026 · 1 min read · Source: Trading Tag
AI & Crypto
Kelly Criterion: Why You SHOULD Use Leverage — And By How Much
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Kelly Criterion: Why You SHOULD Use Leverage — And By How Much

How to find your optimal leverage & maximize returns with my free Kelly Curve indicator

Henrique CentieiroHenrique Centieiro9 min read·Just now

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How much should you allocate to a certain investment? How much should you leverage?

If you have $10,000 available to invest, how much should you put into a stock like Tesla, and how much should go into an index fund like the S&P 500?

Most investors have no idea what the optimal allocations are to maximize their returns.

“Tesla stock? I’ll put $5,000. S&P? Let’s do $2,000.”

Don’t ask them why. They wouldn’t know how to answer. And that’s exactly why they’re leaving huge profits on the table.

In this article, I will show you how much you should allocate to that Tesla stock and why you should use leverage (yes, leverage) to invest in the S&P 500 index fund.

Pay attention— this article could double your returns.

The Expected Value Equation That Most Investors Ignore and Why It Matters

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