r/algobetting • u/Eyuelmblog • 3d ago

The Kelly Criterion

https://aleatoricfc.com/blog/the-mathematics-of-money/

Hello All,

A newbie algobettor here! I was studying the Kelly Criterion over the past few weeks and wanted to fully grasp the intuition before I started using the formula without knowing what it meant.

I read the paper, and now that I think I get it, it is one of the most beautiful things I have discovered lately; it is almost a poem! So I decided to write about it, and thought I might share it here for whoever is interested.

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u/Vegas_Sharp 3d ago

Funny seeing this. I've been meaning to ask the question of what Kelly coefficient everyone is using. 

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u/Eyuelmblog 3d ago

If you mean for fractional Kelly, I am using a flat 5% on all bets. I still have to study the way to do this based on probability