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It prompts very different behavior, to extend the coin flip metaphor: If you could slow down time and see the flip turning bad, you could quickly withdraw your
by jiggunjer 9y ago
It prompts very different behavior, to extend the coin flip metaphor: If you could slow down time and see the flip turning bad, you could quickly withdraw your bet. Then you'd be much more likely to bet a higher fraction.
- padobson 9y agoI was thinking about this while reading. The Dot Com and Sub Prime mortgage crashes took a lot of people buy surprise, but not everyone. Moving into T-bills, cash, or precious metals at the beginning of those downturns would be enough to make the 2x Kelly and 3x Kelly perform better.