An intuitive explanation of the kelly criterion, with a bunch of worked examples. Zvi’s post is good but lacks worked examples and justification for heuristics. Jacobian advises us to Kelly bet on everything, but I don’t understand what a “kelly bet” is in all but the simplest financial scenarios.
An intuitive explanation of the kelly criterion, with a bunch of worked examples. Zvi’s post is good but lacks worked examples and justification for heuristics. Jacobian advises us to Kelly bet on everything, but I don’t understand what a “kelly bet” is in all but the simplest financial scenarios.