Edward Thorp was a pioneer in the modern applications of probability theory, harnessing even minuscule correlations for reliable financial gain. His work demonstrated how mathematical principles could be applied to overcome casino advantages, and he became known as the father of the wearable computer for inventing the first such device. Thorp's influence extends beyond mathematics into finance and the early era of computing, making him a unique figure at the intersection of science and practice.
From Las Vegas to Wall Street, How I Beat the Dealer and the Market
Traces the author's experiences as a mathematics wizard, author, inventor, hedge-fund manager, and card-counter who revealed casino-beating strategies, invented the first wearable computer, and launched a Wall Street revolution.
Traces the author's experiences as a mathematics wizard, author, inventor, hedge-fund manager, and card-counter who revealed casino-beating strategies, invented the first wearable computer, and launched a Wall Street revolution
This volume provides the definitive treatment of fortune's formula or the Kelly capital growth criterion as it is often called. The strategy is to maximize long run wealth of the investor by maximizing the period by period expected utility of wealth with a logarithmic utility function. Mathematical theorems show that only the log utility function maximizes asymptotic long run wealth and minimizes the expected time to arbitrary large goals. In general, the strategy is risky in the short term but as the number of bets increase, the Kelly bettor's wealth tends to be much larger than those with essentially different strategies. So most of the time, the Kelly bettor will have much more wealth than these other bettors but the Kelly strategy can lead to considerable losses a small percent of the time. There are ways to reduce this risk at the cost of lower expected final wealth using fractional Kelly strategies that blend the Kelly suggested wager with cash. The various classic reprinted papers and the new ones written specifically for this volume cover various aspects of the theory and practice of dynamic investing. Good and bad properties are discussed, as are fixed-mix and volatility induced growth strategies. The relationships with utility theory and the use of these ideas by great investors are featured.
The Book That Made Las Vegas Change the Rules Over 1,000,000 Copies in Print Edward O. Thorp is the father of card counting, and in this classic guide he shares the revolutionary point system that has been successfully used by professional and amateur card players for generations. This book provides: o an overview of the basic rules of the game o proven winning strategies ranging from simple to advanced o methods to overcome casino counter measures o ways to spot cheating o charts and tables that clearly illustrate key concepts A fascinating read and an indispensable resource for winning big, Beat the Dealer is the bible for players of this game of chance. **Bring these strategies into the casino: Perforated cards included in the book**