Quote:
Originally Posted by Rogthedodger  Another money management question is whether the bet amounts should vary as the bankroll varies, or if a flat amount should be kept the entire season. While there are advocates for both sides, sticking with a flat amount throughout the season is much simpler and will give similar results as varying your bets as you win and lose. Take a look at your account balance at the beginning of the season, and use 2% of that as your base play throughout the year. At the end of the season, or as the season of a different sport starts up, you can reassess the situation and adjust as necessary. |
Very good article but I have to disagree with the above. A critical component of the Kelly Criterion is readjusting your wagers as you go along. Using your example of a $5K roll with $100 as the recommended bet, if you hit a bad streak and lose half your roll, it would make little sense to keep the $100 bet. In fact, KC would tell you that this would only accelerate your risk of ruin. Same applies on the positive deviations, an adjustment to the bet levels would be recommended.