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
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?
My takeaways would be:
Never trust averages on their face
Being consistent gives you an advantage
Always be looking to reevaluate your situation and maximize what you can get out of it
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
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?
My takeaways would be: