Compound betting

If I bet 2% of my bankroll on 10 games and make a profit, then adding my profit and resizing my bet would be smart over the long run, assuming you always make a profit. But if you lose and resize so that your next bet is smaller than the original then bet sizing at a certain percentage is worse than flat betting, right?

Resizing is always optimal after every bet, but it's not necessarily practical. You probably should become familiar with the Kelly Criterion, although betting full Kelly will probably cause you a few grey hairs. For example, if you have an 80% chance of winning a even money bet, you'd bet 60% of your bankroll on it to maximize growth.

Quote: tongni

Resizing is always optimal after every bet, but it's not necessarily practical. You probably should become familiar with the Kelly Criterion, although betting full Kelly will probably cause you a few grey hairs. For example, if you have an 80% chance of winning a even money bet, you'd bet 60% of your bankroll on it to maximize growth.

If my math's right, I think you'd bet 93.75% of your bankroll, for full kelly.

Edge/variance * bankroll = wager

Edge is 0.60
Variance is 0.64