Segmented Banks
I think the other posters have addressed your question fairly well. However sicne you directed your question toward me, I will add my comments.
You wrote:
As an example, let us assume one has a bankroll equal to $50K. The individual can lose every last penny and it would not effect his lifestyle in the least bit. Even though he can afford to lose, the counter obviously wants to win some $$$.
Rather then play off one bank of $50K, is there ANY advantage for the counter to divide his BR into 5 bankrolls of $10K and play full kelley on each individual one? In the long run would there even be a difference?
First, I want to comment on the definition of bankroll. You said �The individual can lose every last penny and it would not effect his lifestyle in the least bit.�
You are using a recreational player�s definition of bankroll: Money I can afford to lose. For us, bankroll is something we can�t afford to lose.
Do you have a 401 K plan? Would you describe it by saying �I can afford to lose every penny and still no effect my lifestyle?� Most would say No. You should think of bankroll the way you think of your 401 K.
Now regarding your issues of playing full Kelly to each fifth of the bank. I imagined you were asking about sending a team of 5 players out with a piece of the bank, and having each of them play full Kelly to their part of the bank. Now this would mean that their initial betting levels would be at the 0.2 Kelly level relative to the whole bank. I don�t that was your original goal?
However, evem if your goal was to play 0.2 Kelly overall, this is a very poor approach. Because some of he players would double or triple their sub-banks, and would then double or triple their betting levels. They would be over-betting relative to the team. And some would lose part of their stake, and start under-betting relative to the team. This inconsistent betting is bad on several levels.
I can elaborate more on this, but I don�t know if it is necessary. I think I will wait for reply, and then follow-up on any issues or questions raised there.