Code I wrote for this video: https://github.com/manforowicz/Manim-Videos/blob/main/kelly_criterion.pyGreat ergodicity economics blog post by Jason Collins: h...
This is true if you’re betting everything you have. By not having shrinking bets after losses you can tap into the net gains. Compare 1 win followed by 1 loss with $100 start:
This is true if you’re betting everything you have. By not having shrinking bets after losses you can tap into the net gains. Compare 1 win followed by 1 loss with $100 start:
Win is $100+$80 = $180
Loss is $180-$90 = $90
Compare with fixed bets of $50 with bank of $100:
Win is $100+$40 = $140
Loss is $140-$25 = $115