Re: Hedging (901 Views)
Posted by:
BitPlayer (IP Logged)
Date: August 10, 2016 09:37AM
Ignoring the psychological side, doesn't there have to be a mathematical approach to deciding whether and how much to hedge? By not hedging, you are basically taking your implied winnings from the first X legs and splitting them equally among win bets on your covered horses in the last leg. Perhaps the Kelly criterion would tell you whether you have bet too much on those horses, in which case you should take some money off the table by hedging? That's where the strength of your opinion on the last race and the size of your potential score come into play.