Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 70 , 08 January 2024
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Research and Application on Kelly's Formula
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Abstract
The subject of investment finance holds significant importance in contemporary society, with position management in investment serving as a critical factor in determining outcomes of success or failure. Acquiring knowledge in the realm of efficient asset allocation can significantly enhance individuals' ability to effectively oversee their financial resources. The Kelly formula, initially employed for determining the proportion of funds wagered on a particular game, has emerged as a prominent betting strategy within the realm of probability theory. This method aims to optimize the overall growth rate of the main amount throughout a series of independent bets, each of which is intended to yield positive net returns. This study will examine the historical context of the Kelly formula, its mathematical derivation, its utilization in the realms of gambling and investment, and its consequential implications for individuals' investment strategies.
Keywords
Kelly criterion, derivation, application, investment
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-271-8
- ISBN (Online)
- 978-1-83558-272-5
- Published Date
- 08 January 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/70/20231673
- Copyright
- 08 January 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited