Reflections #4
How many times do we need to throw the dice until the probability and the criterion becomes meaningful?
I think you addressed this point when you said that the criterion is only relevant over the long term, that is when the dice is thrown many times.
Yes correct, the Kelly Criterion is designed for long-term optimisation, not short-term results. There's no exact number, but the more "throws" or investment decisions, the more reliable the results.
How many times do we need to throw the dice until the probability and the criterion becomes meaningful?
I think you addressed this point when you said that the criterion is only relevant over the long term, that is when the dice is thrown many times.
Yes correct, the Kelly Criterion is designed for long-term optimisation, not short-term results. There's no exact number, but the more "throws" or investment decisions, the more reliable the results.