Cover of: Fortune's Formula | William Poundstone
Preview

Buy this book

Last edited by Clean Up Bot
July 15, 2019 | History
An edition of Fortune's Formula (2005)

Fortune's Formula

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

  • 5.0
  • 1 Ratings
  • 28 Want to read
  • 0 Currently reading
  • 2 Have read

This edition published in by Hill and Wang

Written in English

400 pages

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%.

Read more

Previews available in: English

Edition Availability
Cover of: Fortune's Formula
Cover of: Fortune's Formula

Add another edition?

Fortune's Formula First published in 2005



Work Description

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%.

First Sentence

"THE STORY STARTS with a corrupt telegraph operator."

ID Numbers

Open Library
OL7974468M
Internet Archive
fortunesformulau00poun
ISBN 10
0809046377
ISBN 13
9780809046379
Library Thing
83632
Goodreads
1155424

Lists containing this Book

History

Download catalog record: RDF / JSON
July 15, 2019 Edited by Clean Up Bot import existing book
October 6, 2016 Edited by Richard Sposato better phrasing
October 6, 2016 Edited by Richard Sposato Edited without comment.
April 28, 2010 Edited by Open Library Bot Linked existing covers to the work.
October 18, 2009 Created by WorkBot add works page