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The Janitor Novice FOUNDER
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Novice FOUNDER
Risk Management
Why is kelly criterion so important when using even half kelly will probably blow tf out of your account in the long run. It boils down to 0.05 or whatever at the end. Which equates to around 1-2% of the initial balance, of what importance is it when it really does not help us out in any effective way?
May 26, 2026 · 02:38 PM · 7 views · Commons
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Luwyn
@luwyn · May 26, 2026 · 03:34 PM
I personally use the concept behind the kelly to prevent myself from blowing up. I only risk a small percentage of my entire account with each bet. This allows me to make N mistakes in a row with a complete loss before my bankroll gets to $0. I learned this intuitively playing poker. I would always risk too much which brought me to $0.

If I can stay above 0, I can continue to play. Once I hit 0, I cant play anymore.

The principle behind the kelly number keeps me in the game to play another day when I am wrong multiple times in a row.
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