The Kelly Criterion is a formula for sizing bets or investments to maximize long-term growth. Before playing, remember:
Can you find the sweet spot?
You have a bankroll and a biased coin. How much should you bet each flip? The Kelly Criterion tells you the optimal fraction — can you figure it out?
The Kelly Formula
f* = 2p - 1
Where p = probability of winning and f* = optimal bet fraction
Starting bankroll: $1,000