Optimizing Betting Strategies with the Kelly Criterion for Economic

Yirong Huo

doi:10.54254/2754-1169/80/20241524

Research Article

Open access

Published on 10 May 2024

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Huo,Y. (2024). Optimizing Betting Strategies with the Kelly Criterion for Economic. Advances in Economics, Management and Political Sciences,80,55-58.

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Optimizing Betting Strategies with the Kelly Criterion for Economic

Yirong Huo *^,1,

¹ University of Washington

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/80/20241524

Abstract

This comprehensive study explores the Kelly Criterion, a strategy devised for betting but with significant implications in economic decision-making and wealth management. The criterion, initially developed to maximize long-term growth in independent repeated bets with positive expected net returns, has evolved to encompass a broad range of applications. Through the use of mathematical modeling and probability theory, this research demonstrates how the Kelly Criterion can be effectively applied to enhance wealth accumulation. The societal benefits of this approach are manifold, extending to the reduction of problem gambling rates and promoting responsible gaming. The research also delves into the broader implications of the Kelly Criterion for society, suggesting that its judicious application can significantly shape the future of gambling as a recreational activity. By ensuring informed decision-making, the criterion benefits both individuals and society as a whole, offering a structured approach to managing financial risks and rewards. The expanded scope of this study highlights the versatility of the Kelly Criterion, showing its potential as a pivotal tool in modern economic scenarios, characterized by uncertainty and fluctuating financial markets.

Keywords

Kelly Criterion, Wealth management, Economic Stability, Investment Strategies

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References

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Cite this article

Huo,Y. (2024). Optimizing Betting Strategies with the Kelly Criterion for Economic. Advances in Economics, Management and Political Sciences,80,55-58.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 3rd International Conference on Business and Policy Studies

Conference website: https://www.confbps.org/

ISBN：978-1-83558-419-4(Print) / 978-1-83558-420-0(Online)

Conference date: 27 February 2024

Editor：Arman Eshraghi

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.80

ISSN：2754-1169(Print) / 2754-1177(Online)

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