The Kelly Criterion is when you’re betting with something that you value logarithmically. That is, doubling it gives you a constant utility. As such, it’s not an even bet. For example, if you have $1500, and you’ve already bet $500 and you’re considering betting another $1, you’re comparing gaining $1 when you have $2000 with losing $1 when you have $1000. Since the dollar is twice as valuable in the second case, you’re actually betting at 1:2 odds.
Also, the Kelly Criterion limits the amount you’re betting based on your certainty. You still bet something.
The Kelly Criterion is when you’re betting with something that you value logarithmically. That is, doubling it gives you a constant utility. As such, it’s not an even bet. For example, if you have $1500, and you’ve already bet $500 and you’re considering betting another $1, you’re comparing gaining $1 when you have $2000 with losing $1 when you have $1000. Since the dollar is twice as valuable in the second case, you’re actually betting at 1:2 odds.
Also, the Kelly Criterion limits the amount you’re betting based on your certainty. You still bet something.