Master the Kelly Criterion for mathematically optimal bet sizing. Learn full Kelly, fractional Kelly, and practical applications for bankroll growth.
The Kelly Criterion is a mathematical formula that calculates the optimal bet size to maximize bankroll growth over time. Developed by John Kelly in 1956, it's used by professional gamblers, investors, and traders worldwide. Kelly betting ensures you bet aggressively when you have a strong edge, conservatively when edge is small, and not at all when edge is negative. Understanding and applying Kelly separates professional bettors from everyone else.