Proportional(Kelly) Betting: per bet vs. per day
January 5th, 2016 at 9:53:00 AM
permalink
Hypothetical situation.. Starting bankroll of $1,000 and staking 5% of your bankroll each DAY. Kelly betting is optimal if we knew what our edge was exactly and if we could recalculate the wager after each play, but realistically we usually bet a few games at a time. Say we win at 53%... I've read that if we don't re-size the bet after each play then proportional or Kelly betting can be a bad staking method. Any thoughts, answers or math about this?
If you cannot resize after each play then Kelly betting is essentially worthless and straight betting is the best staking option, is it not?
If you cannot resize after each play then Kelly betting is essentially worthless and straight betting is the best staking option, is it not?
Last edited by: Chodempole on Jan 5, 2016
January 5th, 2016 at 10:30:35 AM
permalink
If you are betting full kelly, then yes you need to constantly resize to avoid over betting. If you are betting a fractional kelly, especially a more conservative kelly fraction (like 1/4 kelly) then periodic resizing is fine.
