Quant Kelly Trader

The Quant Kelly Trader EA combines precise market structure signals with mathematically founded Kelly-based risk management. Designed for trading the S&P500 (US500) on the M15 timeframe, it merges fast capital growth with controlled risk – inspired by the strategies of the world’s top quants and investors.

With a clear focus on accumulation phases and an adapted Kelly formula, the EA offers a professional tool for traders aiming to exploit growth potential while keeping risks under control.

Strategy

The EA identifies accumulation phases where major market participants build positions. In these zones, it places entries and subsequently follows the overall trend.

Open positions are systematically protected to limit drawdowns and let profits run efficiently.

Session, weekday, and trend filters ensure that only high-quality signals are traded.

An integrated trailing stop expands profits while consistently limiting losses.

Risk Management with Kelly Formula

The Kelly formula has been a proven tool for decades to achieve efficient capital growth – mathematically founded and used by leading investors:

• John L. Kelly Jr. – developer of the formula in the 1950s (Bell Labs, information theory)
• Edward O. Thorp – first applied Kelly to beat roulette and blackjack; later adapted it to hedge funds
• Warren Buffett & Charlie Munger – applied Kelly-inspired allocation principles in their early investment phase
• Peter Thiel – co-founder of PayPal and Founders Fund; describes Kelly as key to efficient risk management
• Citadel & Renaissance Technologies – quant giants still using Kelly principles for billion-dollar portfolios
• William Poundstone – popularized the method with “Fortune’s Formula” among traders and investors worldwide

The pure Kelly formula can be highly aggressive and lead to large drawdowns. The Quant Kelly Trader EA therefore uses a modified variant that keeps the benefits of Kelly for fast growth but limits risk and drawdowns. The result: a balanced and practical risk profile.

This combination makes Kelly a tool for controlled, fast, and sustainable growth – from casinos to the largest hedge funds in the world.

Trading Environment

• Minimum capital: 100 USD for 0.01-lot brokers with at least 1:100 leverage
• Recommended: from 250 USD for all other brokers
• Broker compatibility: designed for all common brokers

Important Notes

• A step-by-step guide can be found in the included screenshots.
• Optimized for S&P500 (US500) on M15.