position_size
Calculate Fractional-Kelly position size for a binary bet using bankroll, market price, and your fair value estimate, while capping risk and rejecting negative-edge wagers.
Instructions
Fractional-Kelly position size for a binary contract, given your bankroll, the market price, and YOUR fair value estimate. Caps at a fraction of full Kelly and refuses negative-edge bets. Returns its assumptions — subtract quote_cost before trusting the number.
Tool call template
Replace each placeholder with a value matching the input schema. Only required parameters are included; add optional parameters as needed.
{
"id": 1,
"jsonrpc": "2.0",
"method": "tools/call",
"params": {
"arguments": {
"bankroll_usd": "<bankroll_usd>",
"price": "<price>",
"fair_value": "<fair_value>"
},
"name": "position_size"
}
}Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| price | Yes | ||
| fair_value | Yes | ||
| bankroll_usd | Yes | ||
| max_fraction_of_kelly | No |