An MIT professor solved the equation Wall Street pays $500K for, in a lecture about how to find the top of a hill.
MIT put the whole thing online. it has been free for years. almost nobody finishes it.
his point: finding the best possible answer to almost anything is one move. write down what you want to grow, take the derivative, and find the exact spot where it stops climbing. that spot is the answer.
he is Denis Auroux, and his 18.02 lectures have taught more people calculus than most universities have students.
now the equation from the post above, the one that tells you exactly how much to bet. it is not a secret formula. it is this. the growth of your money is a curve. bet too little and you are low on the hill. bet too much and you have gone over the top and started falling. Kelly's number is just the peak.
no magic. no fund. one hill, and the single point where it stops going up.
a quant I know rewatches this exact lecture before he sizes a single position.
you were handed the formula and told to trust it. Auroux shows you where it actually comes from, for free, and it has been sitting there the whole time.
A family of four now needs $178,000 to $301,000 a year to get by in America.
Meanwhile, the median U.S. household only earns $83,730.
The American Dream now requires an income most will never earn.
A man spends 50 years teaching at MIT.
He knows his time is running out.
So he records one last lecture — everything he knows, distilled into a single hour.
He died 5 months later.
This is that lecture.
The most important hour you'll watch this week.👇
Bookmark it and read the full Graph Engineering article