Kelly Criterion Bet Size

This function calculates the Kelly Criterion and returns the dollar amount to bet in order to maximize returns.

Usage

kelly_bet(unit_size, win_prob, odds, type = "dec", kelly_type = "full")

Arguments

unit_size

Unit size of your bankroll, typically 1% of bankroll (100)

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

https://en.wikipedia.org/wiki/Kelly_criterion

Examples

kelly_bet(
  unit_size = 100,
  win_prob = 0.58,
  odds = -132,
  type = "us"
)
#> [1] 256
kelly_bet(
  unit_size = 50,
  win_prob = 0.53,
  odds = -105,
  type = "us",
  kelly_type = "Half"
)
#> [1] 182
kelly_bet(
  unit_size = 500,
  win_prob = 0.545,
  odds = 2.1,
  type = "dec"
)
#> [1] 6570
kelly_bet(
  unit_size = 300,
  win_prob = 0.27,
  odds = 5.5,
  type = "dec",
  kelly_type = "Quarter"
)
#> [1] 3234
kelly_bet(
  unit_size = 250,
  win_prob = 0.10,
  odds = 40/1,
  type = "frac"
)
#> [1] 1938