Open Archive 2
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Re: Bet Size
Posted by Graeme Lindridge on 22 February 1998, at 6:39 a.m., in response to Re: Bet Size, posted by John Jay on 21 February 1998, at 1:40 p.m.
John, thanks for your response. My apologies for not clarifying how I arrived at my 'magic' 260 number for the Bet Unit.
As I am sure you are aware, pure Kelly Criterion betting is that percentage of the bankroll equal to the percentage advantage. Most BJ experts recommend betting more conservatively than pure Kelly and their betting formulae reflect this. Typically, 50% to 80% of Kelly.
When I looked at the published formulae I thought it might be possible to lump them all together, juggle the equations and come up with something handier. A bankroll divisor of approximately 260 popped out of the calcs. The number will vary depending on the formulae, pure Kelly being about 200. It seems to hold up Ok.
$10000 bank and True 3, Wong is $78 v $76 for the Bet Unit.
$10000 bank and True 5, Wong is $156 v $152 for the Bet Unit.
$10000 bank and True [6], Uston is $125 v $152 for the Bet Unit.
$10000 bank and True 3, pure Kelly is $100 v $76 for the Bet Unit.
$1000 bank and True 2, Humble is $5 v $4 for the Bet Unit.
$400 bank and True 3, Thorp is $3 v $3 for the Bet Unit.
References: Wong: 'Professional Blackjack'. Uston: 'Million Dollar Blackjack'. [n] is Uston true count. Humble: 'The World's Greatest Blackjack Book'. Thorp: 'The Mathematics of Gambling'.
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