Quotation

Fortune's Formula

the Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street
In its simplest form, the Kelly Criterion is stated as follows: The optimal Kelly wager = (p*(b+1)—1) / b where p is the probability (% chance of an event happening) and b is the odds received upon winning ($b per every $1 wagered). It was Ed Thorp who first applied the Kelly Criterion in blackjack and then in the stock market. http://compoundingmyinterests.com/compounding-the-blog/2012/10/12/how-did-ed-thorp-win-in-blackjack-and-the-stock-market.html