What is the Kelly Criterion?
Anyone who's been involved in the betting world for a while has probably heard of the Kelly formula. This concept was introduced in 1956 by American mathematician John Larry Kelly Jr., after whom the method is named, and it was published in the Bell System Technical Journal. The importance of this system lies in its ability to calculate the optimal amount to bet based on the player's total available bankroll. Here are the four factors to consider in the Kelly Criterion for betting:
