As a poker player, this post is the best articulation I’ve read that explains why optimal tournament play is so different from optimal cash-game play. Thanks for that!
Agreed, one of the objectives of a game is to not die during the game. This is also true for possible fatal experiments like inventing AGI. You have one or a few shots to get it right. But to win you got to stay in the game.
Kelly Criterion can, and in fact by definition is best used for, betting in systems which are non-ergodic. It by definition maximises expected GEOMETRIC GROWTH RATE, even in systems with absorbing states.
but also reduce the volatility and the risk of ruin.
I mean risk of ruin is still exactly 0 with kelly criterion.
You want to avoid maximising expected VALUE in these type systems (akin to going all in whenever EV is anything greater than 0).
As a poker player, this post is the best articulation I’ve read that explains why optimal tournament play is so different from optimal cash-game play. Thanks for that!
Agreed, one of the objectives of a game is to not die during the game. This is also true for possible fatal experiments like inventing AGI. You have one or a few shots to get it right. But to win you got to stay in the game.
Kelly Criterion can, and in fact by definition is best used for, betting in systems which are non-ergodic. It by definition maximises expected GEOMETRIC GROWTH RATE, even in systems with absorbing states.
I mean risk of ruin is still exactly 0 with kelly criterion.
You want to avoid maximising expected VALUE in these type systems (akin to going all in whenever EV is anything greater than 0).