Optimal Betting Question?

Posted by DvBj on August 24, 1997 at 17:32:49:

I bet a constant times my advantage on a given hand times my bankroll up to a maximum bet. The reason for the MAX is to have a spread that is reasonable given the casino's heat factor. I also have a minimum bet, betting this whenever there is no advantage or the casino has the edge.

I have two questions:

1) If I did not have a maximum bet, and did not bet at all when there was no advantage for me would the constant have to be 1/variance to be pure kelly or 1 to be pure Kelly?

2) Would I be better off betting a higher minimum, even when I do not have the advantage, thus allowing a higher maximum in terms of casino heat? When I say "better off", I mean would I grow the bankroll faster with out increased risk of ruin.


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