%0 Journal Article %A Christian Lundström %T Optimal Leverage in Day Trading %D 2018 %R 10.3905/jot.2018.13.2.057 %J The Journal of Trading %P 57-68 %V 13 %N 2 %X Day traders are likely to use leverage to increase their profits. This article systematically analyzes the effect of leverage on profit when using a popular day-trading strategy and clarifies the relation to two optimal leverage strategies proposed for maximizing trading profit: the Kelly criterion and the optimal fraction criterion. The author’s empirical analysis shows how leverage can increase the profit in day trading.TOPICS: Statistical methods, performance measurement %U https://jot.pm-research.com/content/iijtrade/13/2/57.full.pdf