How to use Money Management with Kelly Criterion2017-09-30
Kelly Criterion : the very famous Kelly criterion now available with specific variations. It is applied per selected league and we calculate the yield based on the total available bank roll that the user will insert per league. Also we apply this method to the future picks per league. There available the following variations of Kelly Criterion.
- Kelly Criterion Based on System Success Rate: we apply the Kelly Criterion using the daily total success rate of your selected betting system. We aplly this also to the future picks
Because every day maybe more than one available game per league that is based on your system, we apply the specific variation of kelly criterion to all the available games. So as you see below, in EPL (England Premier League) on 16/8/2016 there were 7 games available and our bankroll was 1000€. Based on the specific kelly criterio, we calculated the stake that you had to place per game. As you see in some games Kelly Criterion did not allow us to place any stake.
According to the final results, we did not win any bets and we lost in total 15.60€ + 103,20€ = 118,80€. So the next day 17/8/2016, the status is as following
Now the new bankroll is 881.20€ ( =1000€ - 118,80€) and based on the new bankroll we calculated the new stakes. The next day 18/8/2017, based on the new bankroll after the results of 17/8, the new status is
- Kelly Criterion Based on Real Odds: we apply the Kelly Criterion using the real odds/probabilities of the market of each game that is included in your selected betting system. We aplly this also to the future picks. The methodology is the same as above.
- Based on League Success Rate: we apply the Kelly Criterion using the daily total success rate of your selected leagues that are included in your betting system. We aplly this also to the future picks. The methodology is the same as above.