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Kelly Criterion Calculator.

When it comes to gambling or investing, it’s important to manage your money wisely to maximize long-term growth. That’s where our Kelly criterion calculator comes in.

Probability (%): Odds: Bankroll:

% of Bankroll:

Stake:

What Is the Kelly Criterion?

The Kelly criterion is a mathematical formula used to determine the optimal size of a series of bets or investments to maximize long-term growth. It takes into account the probability of winning, the amount of the potential payout, and the size of the bankroll or investment capital.

How to Use the Kelly Criterion Calculator.

Enter the probability (%), which represents the likelihood of winning the bet. This value should be a number between 0 and 100.
Enter the odds, which represent the potential payout for winning the bet. This value should be in decimal format (e.g. 2.00) and should not include any additional symbols such as commas or currency signs.
Enter the bankroll, which represents the amount of money you have available to bet or invest. This value should be a positive number.
Click on the “Calculate” button to calculate the recommended % of bankroll and stake based on the Kelly criterion formula.
The % of Bankroll represents the optimal percentage of your bankroll that you should wager on the bet or investment opportunity. This value should be between 0% and 100%.
The Stake represents the recommended amount of money to wager on the bet or investment opportunity based on the Kelly criterion formula. This value is calculated by multiplying the % of Bankroll by the total bankroll.

Advantages of Using the Kelly Criterion.

The Kelly criterion offers several advantages over other betting or investment strategies:

It takes into account the probability of winning and the potential payout, allowing for a more informed decision-making process.
It maximizes long-term growth by adjusting the bet size based on the bankroll and the individual’s risk tolerance.
It helps to minimize the risk of ruin, which is the probability of losing the entire bankroll.

Disadvantages of Using the Kelly Criterion.

While the Kelly criterion offers many advantages, it also has some disadvantages:

It assumes that the probabilities and odds remain constant over time, which may not always be the case in real-world scenarios.
It requires accurate estimates of the probability of winning and the potential payout, which may be difficult to obtain.
It can lead to high volatility, which may not be suitable for risk-averse individuals.

Final Thoughts.

The Kelly criterion calculator is a powerful tool for managing your money when gambling or investing. By using the Kelly criterion formula, you can make informed decisions about the optimal size of your bets or investments to maximize long-term growth. However, it’s important to remember that the Kelly criterion is not a one-size-fits-all solution and should be used in conjunction with other strategies and considerations.