How often will you switch the value of your units after a big win????

I am just back from a trip and reading your post. My comment was in regards to "proportional betting". You cannot lose a whole by betting a portion. If you bet 10% of your bank on every hand you could never go broke, even if you were playing with a disadvantage. People confuse "proportional" with "Kelly". It is impossible to go broke with proportional betting in an unrealistically theoretical sense. This is not a special quality of Kelly. If you bet more than 2X Kelly your bank should shrink forever but never disappear.

The entire concept of "never going broke" is absurd and should be removed from Kelly discussion. We don't have infinitely divisible units. If we did, no type of fractional betting could go bust. But the real danger in using this line of logic is that it leads people to think that Kelly betting is conservative. On the contrary, Kelly betting is growth maximizing. This is the most aggressive way one can possibly bet before bankroll growth will be slowed due to excessive volatility.

is hiding in the free pages. Thanks to DD' and ETF for picking apart the misunderstood aspects of Kelly ratios and entering into a spirited discussion of the actual vs. theoretical components of ROR. This thread has helped me greatly understand the NO aspect in reducing the effects of variance on BR and also some of the real life decisions made by Don S. and Stanford in managing BR that is substandard....or may include 'all future income."

I have now a Kelly FAQ (Thanks John May) and some very stimulating, if somewhat obtuse, observations on BR growth from Clarke and others. This discussion is the essence of how BJ21 regulars value to the long term growth of BR. I wish there were some way to distill this dialogue and post it on the archives.

Thanks again, everyone.