Tag: bet-sizing

Interview Questions

• The Kelly fraction for uneven odds
• Why not just maximize expected wealth?
• Why professionals bet fractional Kelly
• Half-Kelly gives up little growth for much less risk
• Kelly for a continuous edge, f = μ/σ²
• Kelly from your hit rate and win/loss ratio
• Kelly on a 3-to-1 long shot
• Kelly when a loss only costs part of the stake
• Continuous Kelly, sizing a strategy by its Sharpe
• Kelly on a mispriced prediction-market contract
• Kelly sizing when the payout isn't even money
• Kelly sizing a fair coin at 2-to-1 odds
• Kelly growth rate and doubling time on a 70/30 coin
• Kelly sizing a 60/40 coin at even money
• How correlation shrinks your Kelly sizes
• Risk of ruin with a small edge