Kelly's Fundamental Postulate

Kelly's Fundamental Postulate states that the best way to decide how much to bet in a favorable situation is to maximize the expected growth of your capital over time. In simple terms, it means you should choose the betting amount that, on average, leads to the fastest growth of your money, considering the odds and probabilities. This strategy balances risk and reward effectively, ensuring you don't bet too much and risk losing everything or too little and miss potential gains. It's a mathematically optimal way to grow wealth when facing repeated uncertain outcomes.