Comment by joosters
4 years ago
Betting with 'full' Kelly-calculated stakes is highly volatile. If I'm remembering correctly, if you get your probabilities/edge exactly right, you will still have a 50/50 chance of losing half of your bank at some point in the future (i.e. after some number of future bets) It's very common to bet just some fraction of the Kelly stakes in order to smooth out the roller coaster ride.
Sure, I've gone through losing more than 80% of my wealth multiple times by being 100% in BTC, so I got used to that already. At the same time it stresses my friends out a lot. I'm expecting to lose more than 50% of my wealth, but at this point it doesn't really change my life style.