plan, it turns out, is the same as it has been: Bet
big when we have the advantage and bet small when
we don't. Only now we would like to correlate the
size of our big bets more closely with the size of
is how to quantify the betting scheme. Kelly"
has determined that the optimal method of betting,
so as to minimize the chance of ruin and "maximize
profits,"1' is to wager an amount that's proportional
to your current capital. The constant of proportionality,
or "ramp" factor, turns out to be equal
to (slightly less than) the percentage of your advantage."
requires that you constantly re-evaluate your present
bankroll in order to properly calibrate the next wager.
The "Kelly Criterion" method of wagering
therefore presses up the bet sizes of an increasing
bankroll at opportune times when the player has the
advantage (not just because the bankroll is increasing),
and also limits the potential of "gambler's ruin"
by decreasing wagers when the bankroll is dwindling.
5 ][ 6
you play in more than one game, keep separate track
of that. For example, if you start in a $3-$fi hold'em
game, move to $4-$8 Omaha, and then end up in $5-$10
seven-stud high-low, make separate entries for each
with complete statistics. That way you'll know how
you do in each variety of poker. You don't necessarily
have to keep track of table changes if you go from
one game to the same game at the same limit, but if
you do very well at one table and poorly at the other,
you may want to log those results separately to help
track the factors that make the difference.