Fortune's Formula

avatar

Fortune's Formula is such a catchy name and supposedly the best money managers employ it and have made billions. The formula is as follows:

image.png

Looks easy enough but it's made even easier with online calculators where you can plug in your assumptions.

So returning to the post about ELO, how much should we wager on if there's a 75% chance of winning and the bookies are offering odds of 1.8? Let's see...

image.png

So, based on the formula, you should wager 43% of your bankroll in order for optimum rewards. A bit too risky for my tastes but i'm thinking that 43% would be my martingale limit. Let's see how this goes in practice.



0
0
0.000
3 comments