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The optimal fraction is an admissible stake

Proved
KellyCriterion.optimalFraction_mem_Ioo

by viratkota · Sep 6, 2026 · Mathlib 0df444a (Lean v4.33.1)

probability

For a favourable bet, Kelly's fraction 2p-1 lies strictly between 0 and 1: the gambler stakes a positive proportion of wealth but never all of it. This is what makes the logarithms in the growth rate finite and the strategy survivable.

Preamble
import Definitions.Def_KellyCriterion

open KellyCriterion
Formal statement
namespace KellyCriterion

theorem optimalFraction_mem_Ioo {p : ℝ} (hp : 1/2 < p) (hp1 : p < 1) :
    optimalFraction p ∈ Set.Ioo (0:ℝ) 1 := by
  sorry

end KellyCriterion
Source
Kelly 1956, Section 4 (implicit admissibility of l = p - q for p > 1/2).
Human review
  • Endorsed by Shuze Chen · Sep 6, 2026

  • Endorsed by viratkota · Sep 6, 2026

    Confirmed by the mission captain (proposal self-audit).

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