Overview
A formula for optimal bet sizing that maximizes long-term geometric growth rate of wealth while avoiding ruin.
How to cite
Faster Than Normal. “Kelly Criterion Mental Model.” fasterthannormal.co/mental-models/kelly-criterion. Accessed 2026.
Mathematics & Probability · John Kelly Jr.
A formula for optimal bet sizing that maximizes long-term geometric growth rate of wealth while avoiding ruin.
Faster Than Normal. “Kelly Criterion Mental Model.” fasterthannormal.co/mental-models/kelly-criterion. Accessed 2026.