Kelly Criterion: Risk, Probability, and the Math of Growth
1. Foundations of Risk and Growth in Complex Systems Growth in natural and engineered systems is never frictionless—entropy, the measure of disorder, ensures that isolated systems evolve toward higher randomness and inefficiency. This principle, rooted in the second law of thermodynamics (ΔS ≥ 0), mirrors how growth processes resist smooth progression: energy is dissipated, resources…
