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That's why it is important to size one's bets in order to survive. Undersizing one's bets can reduce the windfall; oversizing one's bets can wipe out, leaving n
by raincom 7y ago
That's why it is important to size one's bets in order to survive. Undersizing one's bets can reduce the windfall; oversizing one's bets can wipe out, leaving nothing to bet further. Practical people(unlike the theorists of Efficient Market) have studied this for a long time. That's what Kelly Criterion about portfolio management. Ed Thorp, first, utilized this.