Ranging Bet Sizes and The Kelly Criterion
A mathematical principle called the Kelly criterion indicates that bet increases should be proportional to the player advantage. In practice, this means that the higher the count, the more a player should bet on each hand in order to take advantage of the player edge. Using this principle, a card counter may elect to vary his bet size in proportion to the advantage dictated by a count creating what is called a "Bet ramp" according to the principles of the Kelly criterion. A bet ramp is a betting plan with a specific bet size tied to each true count value in such a way that the player is betting proportionally to the player advantage with aims to maintain a constant risk of ruin for every bet made. Taken to its ultimate conclusion, the Kelly criterion would demand that a player not bet anything at all when the deck doesn't offer a positive expectation; the "Wonging" strategy described above implements this.
Read more about this topic: Card Counting
Famous quotes containing the words ranging, bet and/or criterion:
“For the rest, whatever we have got has been by infinite labour, and search, and ranging through every corner of nature; the difference is that instead of dirt and poison, we have rather chosen to fill our hives with honey and wax, thus furnishing mankind with the two noblest of things, which are sweetness and light.”
—Jonathan Swift (1667–1745)
“I could draw Bloom County with my nose and pay my cleaning lady to write it, and I’d bet I wouldn’t lose 10% of my papers over the next twenty years. Such is the nature of comic-strips. Once established, their half-life is usually more than nuclear waste.”
—Berkeley Breathed (b. 1957)
“Faith in reason as a prime motor is no longer the criterion of the sound mind, any more than faith in the Bible is the criterion of righteous intention.”
—George Bernard Shaw (1856–1950)