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#92 Ed Thorp and Claude Shannon
Founders
How the Kelly System Works in a Casino Situation
In the Thorpe's estimation, they had built $10,000 into $21,000 in about 30 hours of play. And that was after Kim was not listening to Thorpe and wind up burning to $11,000. The Kelly system avoids gambler's ruin quite simply. It is a proportional betting system. That means that each wager is scaled to the current size of the bankroll. Since you bet only a prescribed fraction of what you currently got, you can never run out of money.
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