My Math Forum Optimal growth Gambling

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 June 15th, 2016, 02:59 AM #1 Newbie   Joined: Jun 2016 From: usa Posts: 1 Thanks: 0 Optimal growth Gambling Hi everyone new to this forum I have a question regarding optimal growth and risk say we play a game 1-1 vs an opponent where the payouts are 2 unites for the winner and risk is 1. In other words is a winner take it all payout. We belive we win 65% vs this player giving us a return of investment (ROI) of 30%. We also have a total of 100 to risk in this game. If we where to use kelly criterion we would risk 30% of the the 100 so 30 for optimal growth. As this is clearly a very profitbal opportunity to play this game, but we just have $100 we might want to take in some investors. We still have our$100 of our own money lets say for an investor we take a fee of 5% from whatever amount they want to risk. Let say the investor wants to risk $100 also we would take a 1.05/100$4.76 fee before the event starts? This would give us $104.76 so 30% of that is$31.42 bet for optimal growth? Let me know if i am making a mistake here. thanks and looking forwad to being part of the forum Last edited by thatguy78; June 15th, 2016 at 03:01 AM.

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