This is the first of a “Gambling for Quants” series that discusses the science of gambling for quantitatively trained market practitioners. Part 1 describes the well-known Kelly Criterion fractional betting system for simple coin flips. Most of the important ideas are understandable in this...

We present the "Tax Day Trade," a one day trade that gains an average of 1/2%. The trade was developed using the "Strategic Analysis of Markets Method (SAMM)" described in the two volume series "The Strategic Analysis of Financial Markets" (forthcoming from World Scientific). Detective work...

This article is a prologue to the article "Why Markets are Inefficient: A Gambling 'Theory' of Financial Markets for Practitioners an Theorists", available here: 'http://ssrn.com/abstract=2925532' http://ssrn.com/abstract=2925532. It presents important background for that article - why gambling...

Two trading systems for Eurodollar futures were developed using the SAMM (Strategic Analysis of Market Method) described in the book The Strategic Analysis of Financial Markets (in 2 Volumes) Moffitt (2017a,b). The SAMM formalizes the process of trading system discovery and development. It...

We report a new result on lotteries --- that a well-funded syndicate has a positive expectation risk arbitrage strategy in an equiprobable lottery with no take and no carryover pool. We prove that an optimal strategy for a syndicate in an equiprobable lottery with many uncoordinated bettors...

The Canadian 6/49 Lotto, despite its unusual payout structure, is one of the few government sponsored lotteries that has the potential for a favorable strategy we call "buying the pot." By "buying the pot" we mean that a syndicate buys one of each ticket in the lottery, ensuring that it holds a...