Compare your stakes with Kelly’s, round by round. The outcomes were identical for both players.
Every round: your decisions and Kelly’s decisions
Round #
Expected value
Win probability
Multiplier
Your stack
You risked
Kelly stack
Kelly risked
Round won
Explore the Kelly calculator & method
01 / Find the fraction
What does the maths say?
A binary outcome: win the stated payout, or lose your stake. Change the assumptions to see the trade-off.
Full Kelly fraction
20%
A positive edge under these assumptions.
Kelly sizing comparison
Approach
Fraction
Stake
After a loss
Full Kelly
20%
2,000
8,000
Half Kelly
10%
1,000
9,000
Quarter Kelly
5%
500
9,500
Full Kelly maximizes expected log growth in this model. Smaller fractions reduce exposure; they do not remove risk.
Calculator values are not personal investment recommendations. Real probabilities, losses and correlations are rarely known this precisely.
02 / Behind the decision
Growth is not a straight line.
01
The fraction
For a win probability p and total payout d, the full Kelly fraction is:
f* = (p × d − 1) / (d − 1)
We constrain it to 0–100%: no borrowing or negative bets. At 60% and a 2× payout, full Kelly is 20%. A 100-unit winning stake returns 200 units in total.
02
The objective
Kelly maximizes expected logarithmic growth for repeated bets under the model’s assumptions. It does not maximize the probability of finishing first in a short contest.
Half and quarter Kelly reduce the stake. In the model, that trades some expected growth for less exposure to losses.
03
The uncertainty
The game supplies known probabilities, independent outcomes and exact payouts. Markets do not. Estimation error, correlated positions, transaction costs and changing conditions can make a mathematically optimal stake too large in practice.
This binary-bet model is not a portfolio allocator. A positive edge does not guarantee a profit.
Method, sources & original game
Offers follow the original Gaussian expected-return generator with 5–94% win probabilities and payouts rounded down to one decimal. Outcomes are generated before you choose a stake and reused for every strategy. Benchmarks recalculate their fractions from their own remaining capital each round. Stakes and balances are rounded to whole units each round, as in the original game. Game progress resets when this page is reloaded.