Post
Topic
Board Gambling
Re: bustabit.com -- The Social Gambling Game (formerly moneypot.com)
by
RHavar
on 29/11/2015, 21:10:49 UTC
Ryan can you please explain if you have time how would you use kelly criterion in order to calculate the max bet?

Doing it perfectly in a game like bustabit would be quite challenging, as we have a dynamic house edge (between 0 and ~0.99%). Basically you'd have to wait until everyone bet, then solve for "Point that my loss would be: HOUSE_EDGE_AT_THAT_POINT * MyBankroll" (as equation I'd only know how to solve numerically)  and probably adjust that after each person cashout.

Or you could just estimate the average house edge at ~0.33% and make the make max profit  = 0.33% * bankroll