Using the Kelly objective in RL destroys your network at ruin: 'ultimate doomer algorithm'

rosstaylor90 · x · 2026-10-27

Ross Taylor shares a counterintuitive RL detail: use the Kelly objective directly and ruin (advantage -∞) destroys your neural network through optimization. It 'hates ruin so much it will destroy your network to stop it ever happening again'—the ultimate doomer algorithm. Funny, but a real gotcha for objective design.

Related event: Researcher: Use CRRA Instead of Kelly for Ruin-Averse RL(3 posts)→

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