V, = Fon (1+ 9/*)w‘(l-/*)'*•
Jfc-1
Let us consider one of these situations for a fixed value of k. Since h is fixed, we will use the notation
7* = 70(l + 9/)-(l-/y
where w is the number of wins and 1 is the number of losses, in t trials. The letter / represents the optimal fraction determined by the Kelly System. We will obtain upper and lower bounds for the ruin probabilities in such situations. If bets of arbitrary size were allowed, the player would never be ruined,