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From: nightoftheiguana2000 <nightoftheiguana2000@yahoo.com>
To: vpFREE@yahoogroups.com
Sent: Wednesday, August 14, 2013 4:04 PM
Subject: [vpFREE] Re: Bob Dancer's LV Advisor Column - 13 AUG 2013
Ranking by EV is a good first step, but the gambling and financial worlds (same thing, right?) are littered with the skeletons of those who forgot to account for variance, aka the second moment of a distribution. There are several ways to account for variance, I'd recommend the Kelly System, approximated as: "don't do it if your running bankroll doesn't at least exceed variance times the bet size divided by the EV".
For a general, non-technical review of the Kelly System, see "Fortune's Formula".
For more info, see the vpFREE FAQ:
http://www.west-point.org/users/usma1955/20228/V/Bank.htm
For details, google "Kelly System".
--- In vpFREE@yahoogroups.com, vpFREE Administrator <vpfree3355@...> wrote:
>
> Bob Dancer's LV Advisor Column - 13 AUG 2013
>
> "Theory or Fact?"
>
> http://www.lasvegasadvisor.com/bob_dancer/2013/0813.cfm
>
>
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