Michael Covel speaks with Ralph Vince. If you’ve done your homework on trading systems, specifically about optimal bet sizes, you have run across Vince’s work before. Vince is self-taught and has crafted some extremely detailed, comprehensive looks at optimal betting strategy for traders over the last 20-plus years. Covel discusses whether coming up outside of the typical educational institutions affected Vince’s outlook – and how learning outside of institutions can work better for some than others. Covel and Vince also discuss optimal bet sizes; whether Ed Thorp’s work and the Kelly criteria had any effect on Vince’s work; the importance of knowing the optimal spot depending on your criteria; why maximizing profits can result in a large drawdown – and why you should be happy about that; if diversification really does give you a free lunch; and the importance of learning the wrong approach.