What is Parimatch Book Id’s View on Kelly Criterion?

How It Came About?

This is the second post in a series about the Kelly criterion on Parimatch Book Id and how it can be used to bet on sports. Part 1 of this series gives an overview of the Kelly criterion and shows how it can be used. This post gives a simple explanation of how the Kelly criterion was made, which should help you understand the model better. If you haven't already, please read Part 1 before moving on.

The decimal betting odds method is used in the proof below. To use the “b to 1” odds method, just changed in the steps below to b + 1. Please keep in mind that this isn't a solid proof. For a formal explanation of how the Kelly criterion was made, readers should look at Kelly's original work.