• limitedduck@awful.systems
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    1 year ago

    The key is not letting your losses affect your bet amount. With the gain being only 80% instead of 100%, betting your bank means 1 win and 1 loss leaves you with less than you started. Making your bet amount fixed between flips means 1:1 will instead give you a net gain. The Kelly Criterion says there is an optimal proportion of bank you can bet that will maximize this gain over many flips

    • cheese_greater@lemmy.worldOP
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      1 year ago

      Is there a metaphysical or like everyday life kind of application to this, everybody seems to be talking about Gambling or like using that metaphor at the very least. I don’t gamble (in name if not in deed) but I sense there’s a takeaway I can sort of apply to life buried in here. Any thoughts?

      • limitedduck@awful.systems
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        1 year ago

        My takeaways would be:

        1. Never trust averages on their face
        2. Being consistent gives you an advantage
        3. Always be looking to reevaluate your situation and maximize what you can get out of it