The formula may recommend that you bet a large sum (25% and more) which, in the event of a poor estimate and a negative result, would destroy your efforts. For this reason, instead of betting the percentage suggested by Kelly’s formula, punters like and sometimes only use a fraction (a half or a quarter) of the amount suggested by Kelly’s formula. This is commonly known as the Kelly fraction .
If, Kelly’s formula is theoretically good, in the long term, in reality it turns out to be difficult to set up. It is imperative that the probabilities that you will insert in the formula are exact, because otherwise your mathematical advantage is biased and can backfire on you. Hence a significant margin of error which in practice leaves this formula difficult to apply for the average bettor. From the toto site you can have the best sites chosen now.
The Fibonacci betting system
The Fibonacci Bet system (also called Fibonacci Suite or Fibonacci Sequence ) involves increasing your bets following a losing bet, so as to recover the previous loss (s) at the next victory.
Like a martingale you will say to me?
Pretty much. The Fibonacci system works according to the following logic:
The amount of the new bet corresponds to the sum of the two previous bets.
So:
- New Bet: Previous bet 1 + Previous bet 2
- The first bet is therefore 1
- The second bet is also 1, (1 + 0)
- The third bet is 2 (1 + 1)
- The fourth bet is 3 (1 + 2)
- The fifth is 5 (3 + 2), etc.
- Which gives the following sequence: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610.
As soon as your bet wins you recover all your losses and generally cash in a slight profit. For your next bet, you start over at the original amount. To minimize your losses, it is important that the odds on which you bet are always at least at 2.
If the Fibonacci system is apparently less aggressive than the Martingale, it nevertheless shares the same limits, that of your bankroll on the one hand, that of the betting limits and that of the unknown of the outcome of your bets.
By betting € 10, on the 10th bet you will have to bet € 550, is it really worth it?
Compound Interest
Compound interests are well known in the financial markets and often described as a way to get rich! History has it that Einstein described it as the “8th wonder of the world”! Just that !
Compound interest by finance
When we speak of compound interest in banking and investment, we mean adding the income earned by your investment (your interests) to the initial investment. So if your return is 10% at the start for € 100, once your first interest has been pocketed your capital will amount to € 110.