He studied medicine at the German University in Prague, where he subsequently worked as an assistant at Otto Kahler's medical clinic.
In 1894 he relocated to the University of Graz as a full professor, and in 1902 replaced Carl Gerhardt (1833–1902) as director of the second medical clinic at the Charité Hospital in Berlin.
He postulated that a type of bio-electrical system is present within the body that acted like a relay mechanism storing electrical charge (energy) and recharge (action).
[1] He explained this proposition in the book "Allgemeine und spezielle Pathologie der Person" (General and special pathology of the individual).
Kraus' theory on bio-electrics is considered to be a forerunner to psychologist Wilhelm Reich's work with biophysics and body psychotherapy (vegetotherapy).