The Kelly Coin
Content
The fact that we chose sports betting as a way to teach you about how much or how little to risk is no coincidence. The formula for how much to wager was derived by Bell Labs scientist John Kelly and was initially applied to gambling. The so-called Kelly Criterion has been cited by some of the world’s savviest investors such as Warren Buffett and Bill Gross. The game you just played is very similar to an experiment published in 2016 by Victor Haghani and Richard Dewey. (more…)