Kelly Criterion Calculator

A command-line utility for calculating optimal bet sizes using the Kelly Criterion.

Installation

1. First, compile the program:

   gcc kelly.c -o kelly

2. Make it executable:

   chmod +x kelly

3. Move it to your system's bin directory:

   sudo mv kelly /usr/local/bin/

Usage

The Kelly calculator accepts the following parameters:

kelly -b <bankroll> (-pw <win probability> | -ow <win odds>) (-pb <implied probability> | -ob <implied odds> | -bb <bet back ratio> | -gb <gain ratio>)

Parameters:

• -b: Your current bankroll (optional)
• -pw: Probability of winning (0-1)
• -ow: Odds of winning (alternative to -pw)
• -pb: Implied probability from the bet (0-1)
• -ob: Implied odds from the bet (not the payoff odds)
• -bb: Proportion you end with on win (>1)
• -gb: Proportion gained on win (>0)

Examples:

1. Calculate optimal bet fraction with 60% probability of winning and 3 to 2 implied bet odds:

   kelly -pw 0.6 -ob 1.5

2. Calculate optimal bet amount from bankroll with 2 to 1 odds of winning and implied probability:

   kelly -b 1000 -ow 2.0 -pb 0.4

3. For a bet that doubles your money on win:

   kelly -pw 0.55 -bb 2.0
   

4. For a bet that gains 10% of your bet on win:

   kelly -b 500 -pw 0.2 -gb 0.1