3 ms·

You might find the Kelly Criterion interesting and/or useful for optimal bet sizing. This rabbit hole goes deeeep https://en.m.wikipedia.org/wiki/Kelly_criteri

by bormaj 2y ago

You might find the Kelly Criterion interesting and/or useful for optimal bet sizing. This rabbit hole goes deeeep https://en.m.wikipedia.org/wiki/Kelly_criterion https://en.m.wikipedia.org/wiki/Kelly_criterion

Twirrim 2y ago
Oh boy, further down the rabbit hole!
- Twirrim 2y ago
  Okay, unless I'm missing something, Kelly Criterion puts it at 0%, which is about what I'd expect. p = 0.5 q = 0.5 b = 1.0 0.5 - (0.5 / 1.0) = 0.0