Submitted by Richard on Thu, 06/16/2016 - 15:11
Selecting the optimal bet size for a Daily Fantasy Sports game is key to managing the risk associated with the game. If you bet your entire balance in one game, one loss means you are out of the game until you redeposit. On the other hand, making a small bet means your balance will grow slowly.
Did you know that there is a large body of research supporting the use of the Kelly Criterion to select the optimal bet size based on two factors (1) prior knowledge of the payout and (2) the probability of success? Both factors can be determined by the Daily Fantasy Sports player and the optimal fraction of your account balance to wager can be determined.
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