[Shroomy]

The Kelly principle doesnt relate as well to poker as it does to other games (black jack especially!)

but kelly would say that you should figure out your estimated edge for a particular game and only wager the percent of your bankroll in proportion to your edge.

so if you lost you would move down in stakes and if you won (if you projected your edge correctly you should eventually) you would move up in stakes.

of course this doesnt take into account the different skill levels of opponents at the the different stake levels.

All in all kelly doesnt relate well to poker in specific, but to maximizing return w/risk in general.

And remember if you follow it perfectly you are still going to have a 50% chance of losing 50% of your bankroll at any given time.