Sand87 Posted October 30, 2012 Share Posted October 30, 2012 Modifications? Go...! Quote Link to comment Share on other sites More sharing options...
Kolo Posted October 30, 2012 Share Posted October 30, 2012 Re: Kelly for trading/backing multiple selections Does Kelly apply to them? Quote Link to comment Share on other sites More sharing options...
Sand87 Posted October 30, 2012 Author Share Posted October 30, 2012 Re: Kelly for trading/backing multiple selections Well my understanding of kelly is that strictly speaking it's applicable to situations with only two outcomes that are known beforehand: Win A, Lose B. Therefore kelly needs adapted for trading because rather than Win A, Lose B there is a range of possible outcomes. If you back at 8 on 5% commission your real odds are 7.65 which is what goes in to your kelly formula. If you are backing and laying or betting on multiple selections you will not be hit quite so hard by commission. Quote Link to comment Share on other sites More sharing options...
Kolo Posted October 31, 2012 Share Posted October 31, 2012 Re: Kelly for trading/backing multiple selections You could likely bend it to fit but I don't trade so am not sure Quote Link to comment Share on other sites More sharing options...
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