8 ms·

I'm not sure I follow, but you're probably talking about a scenario where the risk/reward ratio is not 1:1. Sure, it's more complicated then. If you take a 10%

by dmos62 7y ago

I'm not sure I follow, but you're probably talking about a scenario where the risk/reward ratio is not 1:1. Sure, it's more complicated then. If you take a 10% chance bet 10 times and it has a risk of -1 and reward of +10, on average you'll get (-1 * 9) + (+10 * 1) = 1.

kaiabwpdjqn 7y ago
> bet 10 times The point in option 1 and 3 is to illustrate that betting 10 times isn’t an option in many systems. You can’t say you should always do something because the risk reward is favorable. That’s still gambling, and sometimes a stupid decision. The average outcome of a gamble is not the likely outcome of taking it. And even ignoring that, it’s still a gamble unless you can confidently run it at sufficient scale to hit the theoretical distribution.