Managing losses in exotic horse race wagering
Optimization and Control
2017-08-03 v2
Abstract
We consider a specialized form of risk management for betting opportunities with low payout frequency, presented in particular for exotic horse race wagering. An optimization problem is developed which limits losing streaks with high probability to the given time horizon of a gambler, which is formulated as a globally solvable mixed integer non-linear program. A case study is conducted using one season of historical horse racing data.
Keywords
Cite
@article{arxiv.1503.06535,
title = {Managing losses in exotic horse race wagering},
author = {Antoine Deza and Kai Huang and Michael R. Metel},
journal= {arXiv preprint arXiv:1503.06535},
year = {2017}
}