Make smaller bets that are more likely to win and that have smaller risks of downside for a higher “guranteed” positive return rate. —Me (my understanding)
Is this an accurate understanding? Like focus on additive gain rather than trying to “hit the motherlode” or something?
Sorry, I didn’t feel like he really spelled out a takeaway means of immediately understanding and applying this
The key is not letting your losses affect your bet amount. With the gain being only 80% instead of 100%, betting your bank means 1 win and 1 loss leaves you with less than you started. Making your bet amount fixed between flips means 1:1 will instead give you a net gain. The Kelly Criterion says there is an optimal proportion of bank you can bet that will maximize this gain over many flips
Is there a metaphysical or like everyday life kind of application to this, everybody seems to be talking about Gambling or like using that metaphor at the very least. I don’t gamble (in name if not in deed) but I sense there’s a takeaway I can sort of apply to life buried in here. Any thoughts?
