File:Kelly bet.png

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Summary

Description
English: This graph shows the expected value of different betting fractions. The game in this example is for a coin flip win-or-lose, with the coin weighted to win 60% of the time. The optimal bet, called the Kelly bet, is 20% of the bankroll. Over time, on average, each round will increase the bankroll by 2.03%. Betting less than 20% will have a lower average return, e.g. betting 10% will provide an average 1.5% increase. Betting over 38% percent will result in losing money over time.
Formula: r = (1 + fb)p · (1 - fa)q - 1
Date
Source Own work
Author Zojj

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Captions

Example of the optimal Kelly betting fraction, versus expected return of other fractional bets.

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Date/TimeThumbnailDimensionsUserComment
current03:00, 15 August 2021Thumbnail for version as of 03:00, 15 August 20211,172 × 942 (48 KB)ZojjUploaded own work with UploadWizard
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