A simple way to derive the “Fortune’s formula”
19 May 2025 3 minute read 0 comments I_g_o_r
In this post we consider a simple way to derive/prove the “Fortune’s formula” (see [1]), also known as Kelly criterion (see [2]). If p -denotes a probability to win a bet (or trade, etc.), O -denotes decimal odds on a winning bet, L -denotes a share...