Kelly criterion

noun

A formula used to determine the optimal size of a series of bets in order to maximize the logarithm of wealth.

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Meanings

noun
  1. mathematicsA formula used to determine the optimal size of a series of bets in order to maximize the logarithm of wealth.

Origin

Described by J. L. Kelly, Jr, a researcher at Bell Labs, in 1956.

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Cite this entry
APA

Kelly criterion. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/Kelly%20criterion

MLA

“Kelly criterion.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/Kelly%20criterion. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “Kelly criterion,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/Kelly%20criterion.

Source: Kelly criterion on Wiktionary, CC BY-SA 4.0.