Cover of: Fortune's Formula by William Poundstone

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Last edited by MARC Bot
December 11, 2020 | History

Fortune's Formula

The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street

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Publish Date
Publisher
Hill and Wang
Language
English
Pages
400

Previews available in: English

This book is about Kelly's criterion developed in 1956 by two scientists (John Kelly Jr. and Claude Shannon) at Bell Labs for the transmission of information over copper wires but who immediately realized its application to gaming and investing. Many more professional gamblers used the formula than investors. One investor Edward Thorpe used it both to beat the casino's and as a hedge fund manager to beat the market. THE FORMULA does not tell one how to find edge but once one does the formula indicates how much one should bet to maximize the creation of wealth. Be warned that the use of a full Kelly will result in much volatility in the size of one's trading account. Many use a 1/2 Kelly which decrease volatility by 90% but decreases the size of the account after a 1000 trades by only 25%.

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Cover of: Fortune's Formula
Cover of: Fortune's Formula
Cover of: Fortune's Formula

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Book Details


First Sentence

"THE STORY STARTS with a corrupt telegraph operator."

Classifications

Library of Congress
HV6710 .P68 2005

The Physical Object

Format
Hardcover
Number of pages
400
Dimensions
9.3 x 6.2 x 1.2 inches
Weight
1.5 pounds

ID Numbers

Open Library
OL7974468M
Internet Archive
fortunesformulau00poun
ISBN 10
0809046377
ISBN 13
9780809046379
LC Control Number
2005005725
Library Thing
83632
Goodreads
1155424

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History

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December 11, 2020 Edited by MARC Bot import existing book
July 15, 2019 Edited by MARC Bot import existing book
August 8, 2018 Edited by ImportBot import new book
January 9, 2011 Edited by ImportBot Found a matching record from Library of Congress .
April 29, 2008 Created by an anonymous user Imported from amazon.com record.