profsummergig15 minutes ago
In case the author is here:
What's the difference between "win probability of win" and "odds", please? The seem the same thing to me.
And also, what are "decimal" vs. "american" odds, please?
Thanks.
rahimnathwani44 minutes ago
I made a 'game' to help me son get some intuition for bet sizing: https://tools.encona.com/investor
SomaticPirate2 hours ago
Interesting, I recently learned about this.
So there is a term called "Full Kelly" which is were you actually wager the amount given by the formula. This is pretty aggressive and not for the faint of heart. Usually, you do something like a "half Kelly" where you halve the suggested bet amount. Usually because you assume you might be incorrect in your estimated advantage.
What I haven't found yet is some mental math rule to apply this. Given some assumed advantage, what percentage should I "wager"?
T-A13 minutes ago
tdullien2 hours ago
Optimal bet size is 2x the coin bias. Dérivation here: https://www.edwardothorp.com/wp-content/uploads/2016/11/TheK...
forinti18 minutes ago
Kelly is nice if you know the odds.
hiramwen37 minutes ago
This woulda been helpful for Leo and the 3% of Korea that got liquidated
butlike2 hours ago
What bet you can make consistently gives you at least 51% odds? As far as I know, the best you can do in a casino is 48%. If I plug 48% into the simulation, it states there is no Kelly edge for that bet.
ToValueFunfettian hour ago
As far as casino games, you might find yourself in this situation with a half-decent poker hand or if you're counting cards in blackjack. Casinos don't hand out advantages over the house, which is why the former is coming from other players and the latter is against the rules. As the sibling comment notes, it is generally irrational to participate in casino games and the simulator is correct to tell you not to do so.
This comes up more when you have (or at least believe you have) information that the counterparty doesn't have.
Lazarean hour ago
Bets with a positive edge can be found most commonly via sports betting, poker games, and the stock market. Although note that most bets you can find via such methods do not have a positive edge, and the edge is not labelled.
More generally, look for any area where bets can be made, and professionals exist who make their living winning such bets. There are professional poker players and sports gamblers; there are not professional roulette players.
thom38 minutes ago
The problem with sports betting is that if you really want an edge (at least in something like soccer) you could easily end up dropping six figures a year on data licenses to have a decent model and be able to find worthwhile bets across all competitions. That puts a lot of pressure on the amount of capital you need to deploy, which rules out a lot of bookmakers. As you graduate to markets with more liquidity (i.e. Asia) you’ll also find your edge shrinking. Still obviously very doable, but it’s hard to guarantee stress free passive income this way.
tahoemph999an hour ago
The first time I ran across Kelly it was WRT card counting. There is some rare positive off the top video poker out there.
TaiXi2 hours ago
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nemesis172 hours ago
Back in the day when I played HU Hyper-Turbos on Pokerstars I created one of these in Mathematica (not as fancy with Monte-Carlo)
destrolas26 minutes ago
Graph needs a log scale
g8ozan hour ago
A similar calculator created many years ago is at https://www.albionresearch.com/tools/kelly