I'm not a mathematician or a quant (but I did code an entire casino). I see this as a Martingale too, and the mechanism looks very similar. In the simplest term

I'm not a mathematician or a quant (but I did code an entire casino). I see this as a Martingale too, and the mechanism looks very similar. In the simplest terms presented in the blog post - rebalancing between one account of "cash" (bankroll, in gambling speak) and the other as a sequence of discrete, uncorrelated bets - what this does is increase the next bet when you lose and decrease the next bet when you win. That's the essence of the Martingale system. It's similar in effect as well, in that it reduces variance and borrows small winnings against a greater risk of ruin. The main difference I see, or innovation if it is one, is that the proportion by which you increase or reduce the bet in this system (1/2 the difference between your bankroll and your betting account) prevents you from outrunning your bankroll on any given bet.