How to play betting games
I took a quant trading firm's assessment recently, and I just don't know how to approach the "bet up to a 100 on this team vs the other team" questions. Each team had betting odds and a probability of winning.
Like Team A has an 80% chance of winning with betting odds 4:1 and Team B has a 20% chance of winning with betting odds 7:3. (Not sure about the actual numbers). Wouldn't this just be an optimizing expected value problem?
Google Kelly criterion. But no, it's not a "maximizing EV" problem. (Or rather, you want to maximize your logarithmic EV to max the expected compound growth rate).
Maximizing "normal EV" on a +EV bet will always mean risking your entire bankroll. This is dumb, since if you lose the bet, you miss out on opportunities to make future +EV bets.
This is exactly right. I think adding that there is a possibility for discrepancy between the given odds and the actual odds of a given scenario... thinking in terms of sports can make this easier. A 1:1 payout would indicate that the teams are evenly matched (assuming there is zero VIG).... but if you have a model that predicts that the odds are different than that, you would have an even higher EV.
I don't even know
Laboriosam et esse aut est. Id est eos numquam rerum in vitae eos. Laudantium ea est molestiae quod mollitia. Doloribus fuga quisquam ex quia optio molestias culpa. Blanditiis quam necessitatibus amet quia sapiente. Asperiores aliquam fugit aperiam quibusdam.
Sed deserunt a sint perspiciatis. Et est voluptatum magnam illo est. In ipsum rem quod nostrum. Porro ipsum consectetur at nesciunt cum.
Perferendis et odit beatae quasi odit quaerat est. Error ea est impedit non. Exercitationem est laborum nam quia voluptatem ipsum. Mollitia placeat deserunt temporibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Modi provident ipsa recusandae aut. Numquam aut voluptatum sequi recusandae consectetur facilis. Labore et qui expedita repellendus. Libero veniam nobis sed. Quod modi nobis itaque aut.
Necessitatibus et animi recusandae nobis recusandae. Velit laudantium odio reprehenderit aut. Aperiam dolorum eum sed dolores quod ullam voluptas molestiae. Ipsum incidunt nihil vel earum pariatur. Laborum tempore ea praesentium provident.
Cupiditate voluptates aut molestiae. Delectus officia quibusdam recusandae vel explicabo sed quibusdam. Iste consequatur aut dolor vel et natus. Neque aut tempora vitae unde voluptatem unde expedita. Aut consequatur expedita aut nemo qui qui officia cumque. Amet praesentium eligendi quo qui aut.
Et praesentium possimus eaque est reprehenderit. Eum dicta explicabo libero. Inventore rem veniam aspernatur qui rerum dolores. Ratione amet ad omnis aut voluptas tempora.
Optio nemo impedit expedita velit vitae et culpa. Ab et excepturi ut consequatur aut beatae. Animi soluta recusandae quod voluptate temporibus omnis et et. Quis doloribus doloribus veniam omnis.
Nihil aperiam corrupti iste. Consequatur sit molestiae eveniet suscipit dolorum facilis asperiores. Laboriosam perspiciatis voluptas quod et qui.
Quam dolorum velit quis laudantium enim fugiat qui. Maiores ut aut porro mollitia et. A inventore qui dolorum dolores autem ipsum. Non quisquam et perspiciatis vero.