Opposite Side Kelly Calculator
Opposite Side Kelly Calculator Info
If you are considering betting on the opposite of an existing bet, the opposite side kelly calculator will show you how much to wager while maximizing the expected growth of your bankroll.
When betting on the opposite side, the opposite side kelly criterion indicates when hedging out some of your risk will increase your expected bankroll growth. If you see an arbitrage opportunity, but are limited on the +EV side, then bet as much as you can on that side and then immediately hedge using the opposite side kelly calculation. Dan Abrams refers to this as an “autohedge.” (See But How Much Did You Lose? Chapter 3) Note that if you have an arbitrage and you are not limited then you should wager f = p on the +EV side and f = (1 - p) on the other side.
- Odds
- The odds of the new bet.
- Probability
- The probability the new bet wins.
- Payout
- The payout of the existing bet as a percentage of your bankroll.
- Odds Format
- Specifies the format used in odds fields.
Math
- f
- The fraction of your bankroll to bet.
- p
- The probability the new bet wins.
- w
- The fraction of your bankroll represented by your existing bet.
- q
- The probability the new bet loses.
- b
- The net fractional odds of the new bet.
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