A Look At The Kelly Formula
Content
The Kelly Criterion is a formula used to calculate bet sizes for people looking to make a sustainable profit over the long term. This is important to think about because imagine a scenario where you have a rigged coin toss that gives you a 60% chance to double your money instead of just a 50% chance to double your cash. It is pretty good bet in fact, one that would make you want to gamble a fair amount on it’s outcome. (more…)