Claude Shannon's 1948 paper defined the mathematical foundation of every digital communication system on earth. This post unpacks entropy as surprise, the source and channel coding theorems, the Shannon-Hartley limit, and the unexpected appearances of Shannon entropy in machine learning and the Kelly criterion.
Information-Theory
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Shannon and Information Theory: The 1948 Paper That Named the Bit -
The Kelly Criterion: Position Sizing as an Engineering Problem John Kelly's 1956 formula for optimal bet sizing is not finance mysticism — it is applied information theory. This post derives the criterion from first principles, explores fractional Kelly, quantifies sensitivity to estimation error, and shows why treating position sizing as an engineering problem changes how you think about risk.