Hi guys, sorry for having been away for rest week.
Quote:
Originally Posted by Justin7
If you give me a (fairly simple) problem that you described, I can walk you through the risk staking.
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The case is really simple on the surface... suppose you have a bet that you either stake part x of your bankroll or don't. If you do, the bet can come out with either probability p1 and odds o1, or alternatively p2 and o2. Finally, with probability (1 - p1 - p2) you lose. This can be extended to arbitrary number of cases... the stuff I'm really considering has some 3500 possible outcomes with probability/odds pairs per bet
So the question is.. how much should one bet on that kind of a proposition? It's important to note that the bet is placed on the whole distribution of outcomes, not the elements of the distribution individually.
The expected value part is easy of course, but I'm not really sure how to move to the bankroll growth side of the argument