Kelly ROR

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Rob Bin

Member
#1
#1
I don't get IT, with Kelly Criterion, ROR is 13,5% if you calculate 3/4 od your BR, if you calculate 2/4 of your bankroll ROR is 5% .

How do I calculate 1% ROR with Kelly betting od even Lower 0,5% ROR?

Kelly * 3/4 BR * EDGE = amount to bet at TC ( with ROR 13,5%)

I can't find if there is thread similar to this...
 
D

DSchles

Well-Known Member
#3
#3
Rob Bin said:
I don't get IT, with Kelly Criterion, ROR is 13,5% if you calculate 3/4 od your BR, if you calculate 2/4 of your bankroll ROR is 5% .

How do I calculate 1% ROR with Kelly betting od even Lower 0,5% ROR?

Kelly * 3/4 BR * EDGE = amount to bet at TC ( with ROR 13,5%)

I can't find if there is thread similar to this...
Click to expand...
Can you please type correctly and ask your question clearly. What you wrote the first time doesn't make much sense.

Don
 
M

Meistro

Well-Known Member
#4
#4
I think what he is asking is how can he reduce his ROR down to 1% or 0.5% while still sizing his bets in a manner that is proportional to his advantage?
 
D

DSchles

Well-Known Member
#5
#5
Meistro said:
I think what he is asking is how can he reduce his ROR down to 1% or 0.5% while still sizing his bets in a manner that is proportional to his advantage?
Click to expand...
Thanks for writing it in English! If you play "fixed Kelly" and don't vary your bet size as your bankroll fluctuates, ROR is 13.5%. As you play fractions of full Kelly, ROR varies inversely to the fraction. So, if you bet half Kelly, the reciprocal (inverse) of 1/2 is 2, and .135^2 = .0182 = 1.82%, which is ROR for half kelly.

Play around with a calculator to get any values you like. For example, quarter Kelly yields .135^4 = .033% ROR, which, to me, is silly and overkill.

Don
 
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