The book's Sharpe ratio as bets are added · this book · the ceiling · what 66% a year needs

What leverage buys and what it costs, for any edge · share of the greatest growth · chance of ever halving

Sharpe ratio of one bet
Sharpe ratio of the book, a year
the ceiling, at any number of bets
years of record to prove the edge
two standard errors: t = S √T
stake on each bet
growth a year at this stake
chance of ever falling to half
of today's money; the Sharpe ratio cancels
chance of ever losing 90%
the same formula, x = 0.1

The model

Published: the growth-optimal stake (Kelly, 1956), the law that skill adds up with the square root of the number of independent bets (Grinold, 1989), and the chance of ever falling to a fraction of today's money at a fraction of Kelly (Thorp, 2006, after Schlesinger). Ours: Medallion's 66% a year run backwards at 50.75% to the bets and the correlation it needs, every check, and this page. Growth is measured over cash, and the formulas are the continuous approximation: bets small against the whole.