Cogno wrote: "OK, I misunderstood. There are no adverse tax consequences to a
high-variance play the last day of the tax year that does not have the
possibility of moving you into a different tax bracket (or a net loss)."
Right. If a play causes a change in tax rate, such as not getting a credit for a loss, then you have to consider that change and recalculate your true net EV. Your true net EV is the one that counts for the Kelly criterion. Or another way of thinking of it, for Kelly, the money that goes into your gambling bankroll is the money that counts, other diversions are simply leaks.
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Posted by: nightoftheiguana2000@yahoo.com
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