Use the Kelly Criterion to calculate the optimal stake for a bet based on your perceived probability and the odds offered. This helps you grow your bankroll steadily while managing risk.
The Kelly Criterion is a formula used to determine the ideal bet size for maximizing long-term growth of your bankroll without taking on excessive risk. It considers both your edge and the odds offered.
Kelly % = ((Odds × Probability) - 1) / (Odds - 1)
Kelly % = ((2.50 × 0.55) - 1) / (2.50 - 1) = 0.375 → Stake 37.5% of 10,000 = KES 3,750