Kelly Staking Plan Formula

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Kelly Criterion is also referred to as Kelly strategy, Kelly formula, Kelly staking or Kelly bet. It is a formula used to determine the optimal size of a series of bets in sports or investment. The criterion is most often used in sports gambling and certain investment related scenarios. This online sports betting calculator helps you in calculating optimal stake percentage and the potential profit using the kelly criterion formula.

Kelly Strategy - Sports Betting Calculator

The Kelly criterion or Kelly strategy or Kelly Staking Plan is a formula used to determine the optimal size of a series of bets. Kelly Criteria was developed in 1956 by John L. Kelly and was designed to maximize the growth of your bank roll over the long term.

To see the Kelly formula in action, let’s take an example of a football match where the odds available on the draw are 3.50 (or 5/2 with an implied probability of 28.6%) but your estimate of the ‘true’ probability of the draw is 30%. The formula for calculating the Kelly stake is: (Probability multiplied by odds) – 1 divided by (odds-1).
Kelly staking plan is using mathematical formula to determine optimal stake for your bets. It requires that you know your winning percentage and odds at which bet will be placed. Original Kelly formula is f = (b. p - q) / b. F is the percentage of your betting bank that should be used as stake. B is the net price at which bet will be placed.
When it comes to making long-term profit through gambling, managing your betting bank correctly and finding the right staking plan is as important. When it comes to making long-term profit through gambling, managing your betting bank correctly and finding the right staking plan is as important.
As explained in the Kelly Criterion staking strategy Betfair page, the formula to claculate the Kelly stake is: (BP-Q)/B Where B is the odds you are getting -1 (because we're using decimal odds), P is the likelihood of the bet winning and Q is the probability of losing (or 1 – P).

Kelly Staking Plan Formula Examples

Formula:

r = (((o-1)/100) * (100-c)) + 1f= (1 / t) * 100v = r / ((1/t) * 100) s= ((((t / 100) *r) - 1) / (r - 1)) * bp= ((((t / 100) * r) - 1) / (r - 1)) * 100w = s * (Real odds - 1)l = s
Where,r = Oddsf = Fair odds v = Values = Stakep = Stake Percentage w = Potential Profitl = Potential losses b = Bank Rollo = Decimal odds t = Estimated win Probability c = Commission

The formula was developed by John Larry Kelly. The kelly strategy determines the capital percentage to be used in each bet/trade to maximize long-term growth. Kelly Criterion was most commonly used by gamblers in horse racing. Later the strategy was applied to investing. Decide how much to bet when the odds are in your favor using this online kelly strategy sports betting calculator.