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Martingale-type money management systems (eg. double your last loss)
work, to some extent, in negative expectancy games like roulette.
Because of the house advantage, however, you will eventually lose. No
money management system can turn a net losing game or system into a
winner.
On the other hand, a positive expectancy game like a well-tested
trading system, can be enhanced with anti-martingale money
management (eg. increase your trade size after a win, decrease after a
loss). Martingales are not effective in positive expectancy games.
----- Original Message -----
From: "Henry Amand" <back@xxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Friday, July 13, 2001 11:44 AM
Subject: Re: Naz 100 futures buy and hold system
> > I've used a similar methodology in Blackjack, except doubling my bet each
> > time I lose. It works great some of the time, but long losing streaks are
> > painful.
>
> I used the same in Roulette. Play red or black and if you loose double.
>
> Biggest problem:
>
> Say you play 10$ first bet. Lets say we have a loosing streak of 10 times.
> (believe me, it almost sounds impossible but i have met a loosing streak
> op 23 times)
>
> 10
> 20
> 40
> 80
> 160
> 320
> 640
> 1280
> 2560
> 5120
>
> At this point you have already lost the 5100 you are playing. And, if you
> win at this point, you will only win $10 ! (your money back plus the initial
> $10)
>
> I don't think i will ever risk this again for just $10
>
> (yes, i played this game and lost)
>
> Taking this to the casino (wat i tell you now is not for the stock market as
> far as i can see it) it is better to play the game the other way around.
>
> Take $250 and play that 25 times. Put it on red. If you win let it stand
> and let it stand for as long as you feel comfortable. If you loose, it will
> feel like you have lost $10 If you win after, say 6 times, your $10 has
> become 20, 40, 80, 160, 320, 640
>
> This way you can play 25 times for $250. More fun than playing 10
> times for $10000 i think :-)
>
> Also think you will be more succesful in the casino this way.
>
> Greetings
>
> Henry
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