fun88: How to use the Kelly Criterion for betting
Before betting, bettors should consider six important questions: who, what, when, where, why and how? But this article is about which method, i.e. how much do we want to bet on the market we are interested in?
Kelly criterion
This is a common betting method and it is recommended that the amount bet should be proportional to the perceived advantage.
Take betting on the Premier League as an example. We change these questions accordingly:
Who to bet on? Manchester United
What to bet on? top four
When to bet? Now
Where to bet? fun88 always offers the best odds
Why bet? they seem underestimated
How much to bet? How much money to bet on this outcome?
When making financial investment decisions, the key issue is not only finding the appropriate financial products to invest in, but also deciding how to segment one’s investment portfolio. Likewise, the important question for bettors is how much to bet?
Kelly criterion formula:
(BP – Q) / B
B = European odds -1
P = probability of success
Q = probability of failure (e.g. 1-p)