Aaron Brown, author of The Poker Face Of Wall Street, makes a strong case for the negative impact of volatility drag on expected value with respect to the Kelly Criterion in the following posts:
* Short-Term Variance
* Risk Of Ruin And Kelly Betting
* Bankroll Performance Simulator
* Betting Strategy.
The above before and after illustrations show a worked example of setting stakes to match a zero difference between expected value and volatility drag.