You could now say that matters are going to get just a bit more complex. The Kelly staking plan is based on using the ‘Kelly Constant’. Kelly Criteria was developed in 1956 by John L. Kelly and the Kelly Criteria is designed to maximize the growth of your bank-roll over the long term, by determining the optimal stake on a bet. The Kelly Criteria requires that your percentage-estimations (probabilities) are better than the bookmaker’s estimations. If you are confident that you can determine value to be on your side as opposed to that of the bookie, the following Kelly Criteria formula will tell you the optimal amount of your bank to bet.
f* = bp - q / b
In TSM things are kept pretty simple as TSM does all the maths.