Could you please explain what you mean by Kelly?
----- Reply message -----
From: "nightoftheiguana2000@yahoo.com [vpFREE]" <vpFREE@yahoogroups.com>
To: <vpFREE@yahoogroups.com>
Subject: [vpFREE] Re: Bankroll question
Date: Wed, Jan 21, 2015 1:51 PM
vp_wiz wrote: "Just to clarify noti's excellent feedback, a kelly bankroll defines a minimum bankroll threshold. Many agree that 2 x kelly represents an "adequate" bankroll ($17k in this instance)."
That'd be my basic approach to any gamble or "investment". If your current bankroll is at least double Kelly (2 x betsize x variance / edge) then start. If you run bad, unlucky or maybe you miscalculated your true edge, and your bankroll shrinks to single Kelly, stop and start scouting for a gamble that is at least double Kelly for your current bankroll. Scouting is free, enjoy the display of the thrill of victory and the agony of defeat all around you. Don't start gambling again unless you find something that is at least double Kelly. There's about a 10% chance of bankroll shrinkage from a double Kelly bankroll to a single Kelly bankroll due to luck alone, so there's no need to worry about this strategy not being aggressive enough. Mathematically, you can't be more agressive in seeking bankroll growth than Kelly, outside of the Kelly criterion is just less bankroll growth and more risk, good luck if that's your choice.
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Posted by: "=?utf-8?B?dnRyb3kyMTZAeWFob28uY29t?=" <vtroy216@yahoo.com>
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