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Ep. 750: Eclectic Mega Episode with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Importance of Information Theory in Betting on Fixed Horse Races

The Kelly formula was developed in the 1950s by an engineer at Bell Labs. He found a way to bet on fixed horse races based on inside tips from slot machines. But he also realized that it could be applied to other gambling games like blackjack and roulette. His work got him into trouble with AT&T, who had been criticized for aiding illegal gamblers. The most important thing is that you only bet where you have a mathematical edge over others.

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