"Fortune's Formula"

"Fortune’s Formula," proposed by mathematician Edward O. Thorp, is a strategy for maximizing wealth by balancing risk and reward. It suggests that an investor should determine the optimal size of each bet or investment by weighing the chances of winning against the potential payoff, while considering their risk tolerance. The core idea is to allocate resources proportionally to the edge or advantage one has, rather than risking everything or being too cautious. This approach aims to grow wealth steadily over time by applying mathematical principles to control risk and capitalize on favorable odds.