Re: What is the Kelly's theorem?

Miscellaneous Page


Posted by David D'Aquin on July 11, 1997 at 15:31:15: In Reply to: What is the Kelly's theorem? [see Part I] posted by Bisser on July 11, 1997 at 14:19:12:

This would go on forever. But basically, in any positive expectation game there exists an optimal fraction of bankroll, which if wagered on every bet, will maximize the expected log growth of your bankroll. In blackjack that fraction can be approximated by ev / variance. You should go green if you want to know more, as there is more about this on the theory page than you'll ever wish to read.


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