Why teach about these concepts in terms of the Kelly criterion, if the Kelly criterion isn’t optimal? You could just teach about repeated bets directly.
A couple of reasons:
For whatever reason, people seem to really like Kelly criterion related posts at the moment.
I think Kelly is a good framework for thinking about things
“Kelly is about repeated bets” could easily be “Kelly is about bet sizing”
“Kelly is Black-Scholes for utility”
Kelly is optimal (in some very concrete senses) and fractional-Kelly is optional in some other senses which I think people don’t discuss enough
Why teach about these concepts in terms of the Kelly criterion, if the Kelly criterion isn’t optimal? You could just teach about repeated bets directly.
A couple of reasons:
For whatever reason, people seem to really like Kelly criterion related posts at the moment.
I think Kelly is a good framework for thinking about things
“Kelly is about repeated bets” could easily be “Kelly is about bet sizing”
“Kelly is Black-Scholes for utility”
Kelly is optimal (in some very concrete senses) and fractional-Kelly is optional in some other senses which I think people don’t discuss enough