Kelly Criterion

• Economics
• The "Just One More" Paradox: https://www.youtube.com/watch?v=_FuuYSM7yOo
• Mathematics of Maximizing Profit in Gambling/Investing | Kelly Criterion: https://www.youtube.com/watch?v=-X9u9oYvGYk

\(f = p/a - q/b\)

• where \(f\) is the fraction of money to bet
• \(p\) is the probability of win, \(q\) is probability of loss
• \(a\) is the factor by which the invesment increases on win, and \(b\) is the factor for loss