Kelly Criterion Part 2: Avoid Lotteries and Reverse Lotteries

[Sekiyo]

What I don't get is why he does harmonize the different betting systems on the profit factor.
I would have harmonized them on the E(x) which is more informational.

Which would give:

But both him and me used arithmetic mean.
When we should have used the geometric mean.

 

[ironchef]

This:

The more drawdown, the harder to dig yourself out of the hole.

Seems like common sense to me.