http://bjlkeng.github.io/enTue, 10 Mar 2026 20:54:59 GMTNikola (getnikola.com)http://blogs.law.harvard.edu/tech/rsshttp://bjlkeng.github.io/posts/optimal-betting-and-the-kelly-criterion/Brian Keng<div><p>My last post was about some <a class="reference external" href="http://bjlkeng.github.io/posts/gamblers-fallacy-and-the-law-of-small-numbers/">common mistakes</a> when betting or gambling, even with a basic understanding of probability. This post is going to talk about the other side: optimal betting strategies using some very interesting results from some very famous mathematicians in the 50s and 60s. I'll spend a bit of time introducing some new concepts (at least to me), setting up the problem and digging into some of the math. We'll be looking at it from the lens of our simplest probability problem: the coin flip. A note: I will not be covering the part that shows you how to make a fortune -- that's an exercise best left to the reader.</p> <p><a href="http://bjlkeng.github.io/posts/optimal-betting-and-the-kelly-criterion/">Read more…</a> (12 min remaining to read)</p></div>bettingKelly CriterionmathjaxprobabilityShannonThorphttp://bjlkeng.github.io/posts/optimal-betting-and-the-kelly-criterion/Sun, 15 Nov 2015 21:13:31 GMT