Questions tagged [betting]
The betting tag has no usage guidance.
18
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Determining bet sizes given odds
Recently, I was asked the following question in an interview with a prop trading firm.
You are given the opportunity to make money by betting a total of 100 bucks on the outcome of two simultaneous ...
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Combination of bid ask of two instruments
You have 2 instruments: X in which you are quoting 35 @ 40 and product Y in which you are quoting 15 @ 30. We want to make a market on the product X+Y. What is the bid-ask spread you will quote?
Got ...
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Bet sizing to actual orders
At chapter 10.2 in Advances in Financial Machine Learning it says:
Suppose that one strategy produced a sequence of bet sizes $[m_{1,1}, m_{1,2}, m_{1,3}] = [.5, 1, 0]$, as the market price followed ...
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1
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To gamble or not to gamble! (solving a system of ODEs maybe?)
Assume we have some money. At every point in time $0\le t \le T$, we can take either action 1 that is to keep our money until $T$ say in a bank and have an expected return of $f(t)$ or take action 2 ...
user57062
2
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1
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858
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Kelly Criterion for Multiple Simultaneous Correlated Bets [closed]
I am looking for an equation for the optimal fractional bet sizing for N number of simultaneous correlated bets.
I am looking specifically for an equation for binary bets, but an equation for bets ...
3
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2
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517
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Kelly Criterion — maximize expected value and minimize the variance in card game with $x$ red and $y$ black cards
You have $x$ red cards and $y$ black cards. I flip them over one at a time. The probability of flipping a particular colour is proportional to the amount of those coloured cards left. You start with $...
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Alternatives to Kelly Criterion
I am preparing for Quantitative Trading interviews and I know that they basically require you to solve problems on the probability of winning in a given game and then they would ask you:
How much ...
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1
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362
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Dice question - expected winnings of rolling dice $2$ times
Typical trading interviews consider gambling problems such as rolling a dice and winning its face value. The expected winnings are $\\\$3.5$, $\\\$4.25$, $\\\$\frac{14}{3}$ for one throw, two throws, ...
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Trade anything?
I have a question after reading the post below.
https://www.onlinebetting.org.uk/betting-guides/can-you-bet-on-anything-you-want.html
Question:
I want to bet on a niche topic or asset or anything that ...
1
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0
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is the concept of skew observed in fixed odds betting markets?
Bear with me if this sounds a little flippant, but this has got me curious. I know "sports arbitrage" is an active economic activity, although the arbitrage arguments, I think, are not ...
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What happens to the stake of a lay bettor on a betting exchange?
As an example, let’s say you want to lay a horse at 3.40. To win £10 your liability would be £24. In other words, you are offering odds of 3.40 to someone else who is backing the horse to win with a ...
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How much shall we bet on head/tail with $1m bankroll?
I was asked this question in a trading interview:
how much would you bet in a game where you win 300 on tail and loses your 100 on heads? how much will you bet if you can play game once or multiple ...
- 31
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1
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276
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What's the expected value of a repeated game with 50% chance to win 0.5 and 50% to lose 0.5?
Assume we start with 1.
In the first bet the expected value of remained balance is 1.5 * 0.5 + 0.5 * 0.5 = 1
For N times, is it still 1 according to E(XYZ)=E(X)E(Y)E(Z)?
But 1.5^50 * 0.5^50 is not 1.
...
- 1
4
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2
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378
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What is the priority of the waiting non-matched bets, when a match becomes available in Betfair?
Say the back price (odds) on a market is $2.5$.
Then the following time sequence happens:
Bettor $A$ places a back bet with price $2.6$, for $\$100$ (it will not match)
Then bettor $B$ places a ...
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5
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1
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How is the "probabilities sum to $1$" rule enforced in betting exchanges?
Suppose that I am interested in a market on a betting exchange for the outright winner of some event, with three competitors, $A, B$ and $C$ with corresponding probabilities of winning $a, b$ and $c$. ...
Alex Seaton
3
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1
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1k
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Which sports are generally the best for trading on betting exchanges for a profit?
I am looking at trading bets on tennis, football and horse racing in particular as these appear to have the most liquidity.
How much background research and how much trial and error is generally ...
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Predicting price movements on a betting exchange
On a betting exchange the price (the odds that an event will happen expressed as a decimal, 1/(percentage chance event occurring) of a runner can experience a great deal of volatility before the event ...
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The application of quantitative finance in sports betting
I notice that, on the surface, there are some similarities between quantitative sports betting and quantitative finance. Both have the concept of arbitraging, etc.
What are the applications of ...
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