chgobjpro: ROR

[chgobjpro]

Please tell me why 13.5% is the magic number normally used?
When I use CVCX I adjust all the variables so my calculations are always getting 13.5% ROR, but I'm not sure why?

[Don Schlesinger]

> Please tell me why 13.5% is the magic number normally
> used?
> When I use CVCX I adjust all the variables so my
> calculations are always getting 13.5% ROR, but I'm not
> sure why?

It's really not a magic number, but it corresponds to a particular situation.

If you begin sizing your bets optimally, for full Kelly, according to your present bankroll, and you do NOT resize your bets as the bank grows or diminishes, 13.5% represents your ROR, as opposed to eventually winning all the money in the world, in the long run.

Note that this value corresponds to the reciprocal of e^2 (1/e^2), where e is the base of the natural logarithm system.

Don