>>5980730>>5980733>>5980741>>5980746tee hee hee everyone on 4chan is so clever, you are absolutely correct anon yay
A loss of 40% requires (1/0.6)-1 = 66.67% gain to compensate, so the 50% gain offered is not enough.
Given enough trials or coin flips, wealth will inevitably converge to zero.
This is of course known as the Kelly Criterion, often used in gambling
https://en.m.wikipedia.org/wiki/Kelly_criterionthe idea is to maximise not expected wealth but the LOGARITHM of wealth, to see this in action consider the simple scenario of a 50% loss - this would require a doubling, ie 2x gain to recover from, whereas in the log wealth scenario this balances out, ie
ln (0.5) = -0.6937...
ln (2) = 0.6937... etc
