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Kelly criterion

What is the Kelly criterion?

The Kelly criterion is a formula for how much of a bankroll to stake on a bet with a known edge, to maximize long-run growth. Many traders use a fraction of it, such as half Kelly, to reduce swings.

On Polymarket

The Kelly calculator sizes a position from your probability and the Polymarket price.

👉 Kelly calculator

Expected value (EV) · Hedging · Implied probability

Frequently asked questions

How does Kelly criterion work on Polymarket?

The Kelly calculator sizes a position from your probability and the Polymarket price.

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