4 ms·
Kelly Criterion Betting more than the Kelly fraction increases the risk of ruin, especially in the long run. https://en.m.wikipedia.org/wiki/Kelly_criterion h
by nopinsight 2y ago
Kelly Criterion
Betting more than the Kelly fraction increases the risk of ruin, especially in the long run.
https://en.m.wikipedia.org/wiki/Kelly_criterion https://en.m.wikipedia.org/wiki/Kelly_criterion
Note: Not saying that this is applicable in the original post's situation. It's relevant to the parent comment though, and very useful in many situations, such as investing.
- nighthawk454 2y agoYes, precisely. Although that's more about bet sizing for optimal return in the long run, not quite about binary choice of whether or not to play. But conceptually bang on, I had it in mind
- n4r9 2y agoWhat if I wanted to maximise the bottom 5th or 10th percentile of wealth?
- energy123 2y agoFractional Kelly?