Kelly criterion for stake sizing

We use the Kelly criterion for deciding the optimal stake when betting on value bets.

The Kelly criterion calculates the optimal stake for maximum growth of your bankroll, proportional to the perceived value of the bet.

However, most sports traders will bet a fraction of the suggested Kelly stake size, to handle the uncertainty of constantly changing odds. Using 100% of Kelly also leads to higher variance and steeper draw-downs. Lowering the Kelly stake sizing is a good way to manage this risk.

If you are unsure, we recommend a 50% Kelly stake sizing. This is the default in ValueBetting. You can change this in Options / User.

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