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It's common to use some percentage of the Kelly-calculated stakes in betting, Kelly might be the optimal sized bets but it is extremely aggressive. IIRC, even i
by joosters 8y ago
It's common to use some percentage of the Kelly-calculated stakes in betting, Kelly might be the optimal sized bets but it is extremely aggressive. IIRC, even if you are calculating your % edge correctly, Kelly staking means that any point, you've got a 50% chance of losing 50% of all your existing bank at some point in the future. Not many investors/gamblers can stomach that!
- iopq 8y agoI mean, it's not acceptable to use it if there are no stakes below a certain point and no way to borrow more money. Or if the stakes below a certain point have worse returns (higher house take)