TheSnapper

TheSnapper's Bank: $2 607,58 (+ 1216,96% profit)
TheSnapper's Start Bank: $198,00

Mr. Kelly's Bank: $2 130,30 (+ 10551,50% profit)
Mr.Kelly's Start Bank: $20,00

Shannon's Demon Value: $1285,86($1 239,00 capital invested)
Demonic Profits:  $46,86

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A quick update for everyone . Over the past 2 days I added $129 profit, going 9/13 on the horse lays. I hit a new all-time high, so I withdrew $18,50 from Betfair and sent it to the investment team. Mr. Kelly also has that logarithimic look in his eye again...he gained $42 going 8/13, but I think he is building up to anoher logarithmic frenzy, he has been quiet lately (probably hung-over...).
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I am using half-Kelly stakes and Mr. Kelly is using the full-Kelly stakes for laying horses. Recently I have made a good comeback to take over the lead, but I am rather sure that Mr.Kelly (The Perfect Gambler) will storm back sometime soon.
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What is Kelly Staking?



Kelly staking is based on the math developed by John Kelly, a heavily-armed, chain-smoking mathematician at Bell Labs back in the 1950s. Basically, it states that a gambler should be interested in compounding his profits, like a snowball, and that there is an optimum bet size for doing this for any bet, as long as you know your edge, bank size and chance of winning.

Kelly has attracted a cult-like following of gamblers eager to make a fortune. There is quite a debate about this. Many critics claim that Kelly staking is just like martingale system, which rolls over your profits (until you get nuked, of course!). Others declare it is not useful for sports betting, since edges can't be determined mathematically like in card games.

Personally,I think that the real point of Kelly staking is missed by most people. It is not just about winning profits, it is more importantly about protecting your bank against a wipe-out (as in Martingale systems). When you hit a long losing streak, Kelly staking reduces your bets to protect your bank. Level staking always contains a risk of losing your entire bank, but Kelly staking doesn't bear this risk. Conversely, Kelly Staking then increases your bets as your bank grows, giving you more profits than level stakes during big winning streaks. It is a two-sided system of growth and protection.

It reduces the betting to a coin-flip. Imagine you have a trick coin which flips heads more often than tails. Inevitably you will win money betting on heads, right?. The only question to you is, how to win the most money you can? What is the best stake to have the most profits over, say, 1000 flips? 10,000 flips? 1 million flips? That is exatly what John Kelly answered for you. The optimum stake is to bet the full Kelly stake (which is your edge divided by the odds offered by the market).

Anyway, that's all I am doing. It is just flipping a coin each horse-race and growing my bank. I could do the exact same thing with a trick coin The results speak for themselves.