4 ms·

I’d look into the Kelly criterion to get more color on this.

• lordnacho 4y ago
  Plug the numbers into the Kelly criterion. The fraction of your wealth you should bet when the coin is fair and you get paid evens is zero.
• chasebank 4y ago
  Kelly criterion is applicable to betting / trading, where you're winning / losing. If you never 'lose', ie., stay in the market, martingale seems really promising. For instance, SPY will never go to 0. The FED / US govt will never let it. In fact, it can't - it would destroy the US economy. So when you're playing a game where you know the graph will always to up and to the right, eventually, martingale seems appropriate. FWIW, I trade futures on the side and have always been interested in DCA or martingale long strategies.
  • mempko 4y ago
    And yet in the history of the world, countries and economies get destroyed all the time.
    • chasebank 4y ago
      True. But if the US equities market fails, there will be more to worry about than your stock portfolio.