MathProf once said that if your hourly expenses are half of your hourly earnings, a counter playing at 0.5 kelly is effectively playing to 1.0 kelly.
I am wondering what is the formula or method to determine "adjusted kelly" which is the kelly factor after taking expenses into account.
Suppose a counter plays at 1/3 kelly and the ratio of his hourly expenses to his hourly EV is 1/4. What is his adjusted kelly factor? I was playing around with this and guessed it is (1/3)/(1-1/4) = 4/9. Is that correct?
What about a counter who plays with 2/3 kelly and his expenses for each trip are roughly 2/5 of his EV per trip. Does his adjusted kelly factor become 10/9 (2/3 * 5/3)?
MJ
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