Position sizing rules can sometimes be pretty complicated. I am post following question hypothetical question, assuming you trade at a prop firm and you have a long/short strategy that wins 80% of the time. When it wins the return is 40%, when it loses the loss is 15%, holding period is 3 months. So the risk/reward is really great, how would you size position for that strategy? Would you only risk 2-5% per trade? Would you risk 80% or 40% like Kelly or half Kelly would suggest or are there any other good formulas?
Obviously there is rule that fits everyone, but I would be curios how different people apply position size and risk management.