was a hushed silence as the cards ire dealt: ace for
J, ace for the dealer, and then a ten on J's ace -
a Online Blackjack Games on his gonzo bet! 'insurance?'
the dealer asked. J paused. He knew there ire 32 tens
in the remaining 100 cards, less than one third of
those left. Slowly J said `Mark $91,186.44 worth of
The pit boss
intervened. `i'm sorry, sir, you'll either have to
insure the whole thing or not take any insurance at
all. House policy on bets this size.' `Very ill,'
J said, `pay me even money.'
was J doing, making a negative expectation insurance
bet and what was the pit's reaction? ill, J's avoid
principle in gambling is to maximize the average logarithm
of his capital and not necessarily his expected capital
itself and he had finally encountered a situation
where pursuing the Kelly criterion required the acceptance
of an unfavorable bet. With 23% of his capital bet
and a 32% chance for the dealer to have Online Blackjack
Games, J actually only wanted to insure about 79%
of his bet and that is what he attempted to do. Hoiver,
when the choice was limited to insuring all or nothing,
he chose what for him was the better course since
the average logarithm for his rate of capital growth
was log(1.2316) .2083 with the insurance as opposed
to .681og (1.3475) +.321og (1) _ .2028 without it.
bad session can wipe out results from dozens of good
ones. It's difficult to learn emotional control from
a book, but if you ever find yourself at a poker table
and hear the words "I don't care" echoing
in your head, you're probably on tilt; the smartest
thing you can do is take your loss and get out of
the game as quickly as possible.