Kelly Criteria: IS this full or half

PokerJunky

Well-Known Member
The formula I use:

game advantage or disadvantage + .515 * TC = max bet% (% of bankroll)

Is this full or half Kelly
 

KenSmith

Administrator
Staff member
That's actually more than full Kelly. For full Kelly, you'd need to divide that amount by the variance, which is roughly 1.1 or 1.2.

I haven't checked the .515 figure you used, but I assume that is the change in edge per true count point, and it looks about right for that purpose.
I've always just rounded to 0.5. :)
 

PokerJunky

Well-Known Member
Thanks Ken

For example, for a game w/ the following rules (6 Decks, S17, DA2, DAS, OBO, No surrender) the house has a .44% advantage. Therefore if the TC is +3 and a bankroll of $5000 the max bet would be

My method:
[-.44% + (.515*3)] = 1.105% of $5000 or $55.25 (full Kelly) or $26.73 (half Kelly)

Your method
[-.44% + (.5*3)]/1.2 = 0.883% of $5000 or $44.16 (full Kelly) or $22.08 (half Kelly)

I'm I right? Thanks again for the help.
 
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