How Do You Do the Kelly Criterion in Blackjack?

The Kelly criterion is a betting system that was developed by J.L. Kelly Jr. in the 1950s.

It is a way of maximizing your winnings while minimizing your losses in gambling situations. The Kelly criterion has been used in blackjack, horse racing, and other gambling endeavors with great success.

To use the Kelly criterion, you first need to calculate your edge over the house. This is done by taking the number of wins and losses and dividing them by the total number of hands played.

For example, if you have won 10 hands and lost 5, your edge would be 10/15, or 2/3.

Once you have your edge, you need to determine how much to bet. The Kelly formula tells us that we should bet an amount equal to our edge divided by the odds of winning.

So, in our example above, we would bet 2/3 of our bankroll on each hand, since our edge is 2/3.

The Kelly criterion has been proven to be a successful way to gamble over time. However, it is important to remember that it is a long-term strategy; in the short run, anything can happen.

If you are going to use the Kelly criterion in blackjack, make sure you have a large enough bankroll to weather any short-term losses.