Little Understood Method To Improve Your Betting

Perhaps you are familiar with the wildly successful BlackJack player and author by the name of Ed Thorp. Truth be told, Thorp was successful in large part because he mastered the art of card counting in the days before multiple decks became the accepted norm. Yet, that being said, pay close attention to what Thorp has to say about success with betting strategies. Per Thorp, “playing strategy is maybe a third to quarter to what you are going to get out of it. Betting strategy is maybe two-thirds to three quarters.” Did you see that last point there, the one about betting strategy, that is?

So that raises the next obvious question, the question of which of the too many to count nowadays wagering strategies out there that all claim to be the best? Get this: Ed Thorp attributed large portions of his success to his use of the techniques outlined in the staking formula created by mathematician John Kelly, Jr.

What is the formula created by John Kelly? Note that most often, the Kelly formula is referred to as the Kelly Criterion Formula. This formula is set up as follows: each and every time it is time to place a wager, the amount of your wager is the end result of dividing your edge by your odds. Take a look at some real numbers to see how this shows up in the real world. Suppose you know or figure out that your edge is 10% and that you determine that the odds are even. Now take the 10 and divide it by the 1 and you end up with a 10. That tells you that your wager should be 10% of your wagering wallet.

Keep the example going and suppose you have $1,000 in your wagering wallet. So 10% of $1,000 means that that wager works out to be $100. Now this is where it gets interesting. Should that wager come in a winner, the next bet you place will end up being $110 of the wagering wallet which now has a total of $1,100. See how this works?

The fascinating feature to make sure you take the time to understand is that the with the Kelly Criterion Formula, your winnings increase faster that in any fixed wagering system. At the same time, with this formula your losses also slow down. Now all of that being said, understand that the whole system is based on you actually knowing your edge and your odds. Nevertheless, the Kelly Criterion Formula is certainly worth a closer look and may prove to be a winning strategy for you.

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