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Last edited by Richard Sposato
October 6, 2016 | History

Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street 2 editions

Cover of: Fortune's Formula | William Poundstone
About the Book

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%.

2 editions First published in 2005

Edition Read Locate Buy
Cover of: Fortune's Formula
September 19, 2006, Hill and Wang
Fortune's Formula
Paperback in English
Cover of: Fortune's Formula
August 25, 2005, Hill and Wang
Fortune's Formula
Hardcover in English

History

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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.
March 12, 2010 Edited by WorkBot update details
October 18, 2009 Created by WorkBot add works page