# Heart Palpitating Profits

So I taught Extreme Profits to a group of futures, CFD, and forex trades about 7 years ago. And then I traded it live in front of them. Unbelievable!
On one hand, I had a couple of days where I lost 50% of the value of the portfolio I set up just for this purpose.
But I also had many days where I made 50% to 100% of my portfolio…in ONE day!
I think both of those stats would qualify for heart palpitating!
The basic concept behind the Extreme Profits course we taught was the Kelly Formula. This formula was originated with John Kelly, a Bell Labs scientist who was tasked with finding a formula for maximizing the throughput of data through a copper wire.
But his boss, Claude Shannon, was an investor and gambler and saw the potential for using it in gambling and investing.
So what is this formula that MAXIMIZES profits?
The basic concept behind the formula is that you need to know:
• What is your average winner
• What is your average loser
Now you can start to use the Kelly Formula.
Let me use a simple example.
Here is the Kelly Formula for investing:
K% = W - ((1-W)/R)
K% is the percent of your assets you risk on one trade
W is the percent winning trades
R is the amount you win in a winning trade divided by is the amount you lose in a losing trade

So that is the Formula. Simple!
So let’s plug in some number. Let’s pretend you have a technique that makes money on 60% of it’s trades and you make \$2 for every \$1 you lose.
So K% = .60 - ((1-.60)/2)
So K% = .60 - (.4/2)
So K% = .40 or 40% of your equity! Heart palpitating!
Those stats are not unusual for a trading system yet Kelly would have you risk 40% of your equity on EVERY trade!
Now, the real world of Kelly is very different from this which is why I have launched a new course on how to trade Kelly in the stock market. The course includes:
• The exact rules I use with all the nuances
• A spreadsheet for calculating the Kelly percent
• How to accumulate the stats needed
• Several specific trading techniques to use the Kelly on
• How to use Kelly to double your profits even if you don’t use the formula like I showed here
This is perhaps the most powerful course on risk management and is the only class on Kelly investing in the world.
The only way to get the course is to become a member of the Wealthbuilder Insider membership program. This is a dramatic savings from the \$6000 cost that the people who took the course had to pay. The Insider is only \$297 per month so you are getting a huge bargain.