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Kelly Can't Fail

(win-vector.com)
389 points jmount | 1 comments | | HN request time: 0.207s | source
1. lupire ◴[] No.42468228[source]
Intuition for the bet size:

When the deck has d cards left, it is sensible to make d bets of 1/d your stack, where each bet is that one specific card is next. If there are r reds and b=r+e blues, r of these bets simply cancel out r other bets, leaving e (times 1/d) remaining to be a nontrivial bet.