Minor thing: If you already use partial derivatives in the post, I don’t see why you couldn’t have written the one application of lagrange multiplier theorem for the missing part.
The end result is the most elegant formulation of Kelly betting I’ve seen, however, I will keep using my usual formulation for my betting on prediction markets as that one is, in my opinion, better for quick calculation using only my head than this one.
Minor thing: If you already use partial derivatives in the post, I don’t see why you couldn’t have written the one application of lagrange multiplier theorem for the missing part.
The end result is the most elegant formulation of Kelly betting I’ve seen, however, I will keep using my usual formulation for my betting on prediction markets as that one is, in my opinion, better for quick calculation using only my head than this one.
Well, the one thing making that difficult is that I did not know the Lagrange multiplier theorem until reading this comment.
I agree this is in practice not directly applicable because buying contracts with all your money is silly.