Optimal growth Gambling

thatguy78

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Joined
Jun 12, 2016
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Hi everyone new to this forum :) I have a question regarding optimal growth and risk

say we play a game 1-1 vs an opponent where the payouts are 2 unites for the winner and risk is 1. In other words is a winner take it all payout.
We belive we win 65% vs this player giving us a return of investment (ROI) of 30%.
We also have a total of $100 to risk in this game.
If we where to use kelly criterion we would risk 30% of the the $ 100 so $30 for optimal growth.

As this is clearly a very profitbal opportunity to play this game, but we just have $100 we might want to take in some investors.
We still have our $100 of our own money lets say for an investor we take a fee of 5% from whatever amount they want to risk.
Let say the investor wants to risk $100 also we would take a 1.05/100 $4.76 fee before the event starts?
This would give us $104.76 so 30% of that is $31.42 bet for optimal growth?

Let me know if i am making a mistake here.

thanks and looking forwad to being part of the forum :)
 
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