vpFREE2 Forums

Kelly Criterion

#1

Right, but Tomski's approximation does not utilize the Kelly Criterion. It is more closely related to my Attractiveness Index.
Dan

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"ednar" <ednar@kconline.com> wrote:

Video Poker Times Volume 8 Number 5 September/October 200
Bankroll Requirements- A simple approximation.

This was Tomski's simple approximation to calculate bankroll

--
Dan Paymar
Author of best selling book, "Video Poker - Optimum Play"
Editor/Publisher of VP newsletter "Video Poker Times"
Developer of VP analysis/trainer software "Optimum Video Poker"
Visit my web site at www.OptimumPlay.com

"Chance favors the prepared mind." -- Louis Pasteur

#2

If it's some function of advantage/variance, or the inverse, it's the
Kelly Criterion.

If it's some function of advantage/sqrt(variance), or the inverse,
it's the Sharpe ratio.

Dan's AQ formula, I think, is 1000 x %advantage/VI where VI=
volatility index = standard deviation = sqrt(variance), thus AQ is the
Sharpe ratio scaled by 100,000. For example, Dan in Video Poker
Optimum Play, lists the AQ of full pay 2 pair or better joker as 376,
which is calculated from 1000 x 2/5.34

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--- In vpFREE@yahoogroups.com, Dan Paymar <Dan@O...> wrote:

"ednar" <ednar@k...> wrote:
>Video Poker Times Volume 8 Number 5 September/October 200
>Bankroll Requirements- A simple approximation.
>
>This was Tomski's simple approximation to calculate bankroll

Right, but Tomski's approximation does not utilize the Kelly
Criterion. It is more closely related to my Attractiveness Index.
Dan

--
Dan Paymar
Author of best selling book, "Video Poker - Optimum Play"
Editor/Publisher of VP newsletter "Video Poker Times"
Developer of VP analysis/trainer software "Optimum Video Poker"
Visit my web site at www.OptimumPlay.com

"Chance favors the prepared mind." -- Louis Pasteur