Simple Kelly Criterion Calculator
What is a Simple Kelly Criterion Calculator?
A simple Kelly criterion calculator is a simplified version of the Kelly formula, made so that every single punter can easily see if their bet is worth betting on or if they are getting a bad deal, as well as see the optimal bet amount to maximize your profits. The Kelly formula was invented in 1956 by John L. Kelly to maximize the growth of your money and has been used ever since by punters and investors all over the world.
Basically the simple Kelly criterion calculator use the Kelly formula to calculate your bet based on the Kelly formula which looks like this: Stake = ((Odds *Percentage) - 1) / (Odds - 1) * 100. Instead of forcing you to take out your calculator every time to calculate this, you simply input your numbers into the simple Kelly calculator and it will show you the real odds, the fair odds, the value, the stake you should bet, your stake percentage, potential profit and potential losses. It is very simple and fast to use the simple Kelly criterion calculator and you will quickly be able to see if a bet is good or not.
How Do I Use It?
To use the simple Kelly criterion calculator you will simply need to fill out the fields shown in the calculator to your best knowledge and you will be shown the result once you press calculate. You have to input the following data:
- Bankroll Size - Your current bankroll size
- Odds - The odds provided by your bookmaker in decimals or US odds
- Probability - How big a chance you think there is for the team you will be betting on to win in percentage
- Commission - If your bookie charges you a percentage in commission you have to fill it in here
- Kelly Type - Fill in the Kelly type that your bet is, which will commonly be 1
Once all of that has been filled out and you have calculated your results, you will be shown the following data:
- Real Odds - Shows you what the real odds is minus the commission if there is any
- Fair Odds - What the fair odds should be, so you can easily see if you have an edge
- Value - Shows you the value of the bet. Everything above 1 is considered good value and everything below 1 is considered bad value
- Stake - Shows you how much money you should bet on the particular game
- Stake Percentage - Shows you how big a percentage of your bankroll you should bet
- Potential Profit - Shows you the profit you will be making in case you win the bet
- Potential Losses - Shows you the loss you will have if you don't win the bet
And that is all there is to it. You can use the simple Kelly criterion calculator to see if the odds you are betting on is good value or not and which amount of money you should bet in order to optimize your profit. Following the Kelly criterion formula can be a good addition to your bankroll management strategy as it has been proven to work in the long run, assuming that the data you input are correct.