Money Management

[fax6202]

I have read several threads in the HTT regarding money management and have definitely benefited from the various opinions. I do have a question regarding using a Labby method. I know that to chase is always going to bury you eventually, even if your >= 55%. I read a thread where Ganchrow broke down the percentages of losing 15 straight bets; very interesting. I guess what i am asking is what are your thoughts/experiences with the Labby and is it the start down a losing path-like the chase. Please feel free to rip it apart, I have not used it other than experimenting with a small bankroll and would really appreciate some constructive criticism.

[That Foreign Guy]

How to evaluate money management systems:

1) Does it increase bet size based on past losses? If so it is trash no matter how it is dressed up.

2) Does it bet a flat fraction of bankroll or to win a flat fraction of bankroll? If so it is decent

3) Does it increase bet size based on higher Expected Growth (which is a function of edge and probability of winning)? If so it is probably good.

I must be in a good mood this morning to type all that instead of just saying "Flat bet / bet to win 2% until you know what you're doing then use a Kelly fraction."

[Peregrine Stoop]

Flat bet / bet to win 2% until you know what you're doing, then use a Kelly fraction.

[maxvalue1]

Kelly fraction..??? what would be the best palce to learn this "Kelly fraction"??

[That Foreign Guy]

http://www.lmgtfy.com/?q=kelly+criteria

[maxvalue1]

thanks FG...wow,, you really walked me through that one

[donkson]

not sure if serious

[Sawyer]

I don't like Kelly Kamikaze Criterion. Flat/Rachet are better.

[That Foreign Guy]

thanks FG...wow,, you really walked me through that one

If you've read the first five google results for that term and have questions I am happy to either attempt to answer them or suggest new search terms.

Used right, Google is a great teacher.