If instead you reduce your stake by 4x (0.9 if you lose, 1.125 if you win) your expected return is 1.0125 (you’re staking 1/4 as much) and your capturing almost all of that in bankroll growth. Now you’re printing money just by not overbetting your edge.
If instead you reduce your stake by 4x (0.9 if you lose, 1.125 if you win) your expected return is 1.0125 (you’re staking 1/4 as much) and your capturing almost all of that in bankroll growth. Now you’re printing money just by not overbetting your edge.
This is a classic Kelly overbet situation. Expected Value ≠ Expected Bankroll Growth. You can go bankrupt betting on an event where you know for a fact that you have a positive edge 1/
This is a classic Kelly overbet situation. Expected Value ≠ Expected Bankroll Growth. You can go bankrupt betting on an event where you know for a fact that you have a positive edge 1/
Astronomer Cliff Stoll is dopamine personified.
In 1986, he uncovered a 75-cent billing error that led to the discovery of a KGB-sponsored hacker named Markus Hess who was stealing U.S. military secrets.
He now sells Klein bottles out of his basement in California.