The Kelly criterion is used not only in the gambling games, but even at the exchanges. This method is the only one, which has the mathematical basic and that’s why it is used by a lot of different players. But during the use of this method two big problems appear at the same time.
The beginning of Martingale Betting System:
Martingale Betting System #1
Martingale Betting Strategy #2
Martingale System of Betting Strategy #3
The practical use of Kelly creterion
At first you need to determine the credibility of events exactly, because if your mark of the credibility is higher than at the book-maker, you’ll lose more money, but at the same time if your mark is under, you won’t win the sum, you have to win. And the second point is that there is sense to bet only on the events that have the value bigger than it should be, determined by the book-maker.
It is so because if you value the credibility of the event as 50%, the coefficient at the book-maker’s should be bigger than 2. It’s obviously, that the multiply of your credibility and the coefficient is bigger than 1. It’s rather difficult to find such coefficients. And the first reason is described above profit margin. That’s why a lot of player doesn’t risk playing with the use of the Kelly criterion.