I am starting to understand how Kelly works now and really like the strategy. The one part I am not clear on is how the % of bankroll calculation works when you have multiple positive edge bets at the same time.
Starting Bankroll = $10,000
Bet 1 = 4.5% of bankroll which would be $450.
New bankroll balance = $9550
Bet 2 = 4.5% of bankroll
Since I won't know the outcome of Bet 1 before Bet 2 begins do I wager 4.5% of 10,000 on bet 2 or 4.5% of 9550 on bet 2?
My next question is after 1 day of betting my bankroll falls from $10,000 to $9500. For the next day of wagers, do I calculate my wagers as a percentage of $9500 or still from my initial bankroll of $10,000 for my positive edge opportunities?