Kelly Criterion Calculation

This function calculates the Kelly Criterion percentage of your bankroll to bet in order to maximize returns.

Usage

kelly(win_prob, odds, type = "dec", kelly_type = "full")

Arguments

win_prob

Probability of winning a bet (0.55)

odds

Odds for a bet (-110)

type

Type of odds. Possible values are:

• us, American Odds

• dec, Decimal Odds

• frac, Fractional Odds

kelly_type

Optional input altering the kelly formula. Possible values are:

• half, Half Kelly

• quarter, Quarter Kelly

• eighth, Eighth Kelly

Value

Percentage of bankroll to risk on bet

References

Kelly Criterion wikipedia page

Examples

kelly(
  win_prob = 0.58,
  odds = -132,
  type = "us"
)
#> [1] 0.0256
kelly(
  win_prob = 0.53,
  odds = -105,
  type = "us",
  kelly_type = "half"
)
#> [1] 0.0182
kelly(
  win_prob = 0.545,
  odds = 2.1,
  type = "dec"
)
#> [1] 0.1314
kelly(
  win_prob = 0.27,
  odds = 5.5,
  type = "dec",
  kelly_type = "quarter"
)
#> [1] 0.027
kelly(
  win_prob = 0.10,
  odds = 40/1,
  type = "frac"
)
#> [1] 0.0775