The bigger the loss, the smaller the amount invested, but doing so guarantees survival. Assuming that there is 100 yuan at the beginning, if you lose 10 yuan each time, you can lose up to 10 times, but if you use the reverse betting method, you can lose up to 10% each time. After losing 10 times, there is still 34 yuan left in a row. At the end of 20 times, there is 12 yuan left. Its biggest advantage is that it can control the loss within a certain range.
Want to last longer? Just lower the percentage.
(In fact, 10% is still very easy to fail, it should be set below 5%)
Contrary to the horizontal betting method, the reverse horizontal betting Win City method will choose to increase the price when it is profitable.
For example, if you have 100 yuan at the beginning, take out 10 yuan to earn 10 yuan, then the funds will become 110 yuan, and next time you take out 10% of 110, it will be 11 yuan.
If there is profit, the amount invested will be higher and higher. Operate a strategy for a long time, if the expected value is on your side, as long as the time is long enough, it will definitely be profitable.
But the middle process is not a straight line. If the bankroll can’t afford the big ups and downs, you’ll lose before the game.
The reverse betting method is not impossible to fail, but com Win Citypared with the betting method, its room for error is much larger
When the flat betting method loses about 10 times in a row, you need to take out 1024 times the principal as the next bet.
That is to say, even if you only take out 0.1% of the principal at the beginning and lose 10 times in a row, you will lose 102.4% of the principal. However, if you withdraw 10% of your funds at a time, when you lose 10 times in a row, you will have about 34% of your funds left. If you only withdraw 5% at a time and lose 10 times in a row, you still have about 60% of your funds left. , When losing 20 times in a row, there is still 35% of the funds left.
The tole Win Cityrance difference between the two can be easily compared. ——In the financial market, these two methods are relatively seldom mentioned. Whether it is stocks or commodities such as futures, it is difficult to control the profit and loss to a certain amount, but its concept of addition and subtraction is actually exactly the same.
For investors, a big loss is very unfavorable. For example, if you want to make back 50% of your losses, you must make 100% of your profits. Therefore, earning 10 yuan does not mean losing 10 yuan.
The horizontal betting method puts money at risk, while the reverse horizontal betting method will limit the loss limit.
Win CityLose weight when you make money, and gain weight when you lose money. You must pray for the blessing of your ancestors.
If you lose money, you will reduce your position, and if you make money, you will increase your position, so that you can live longer.
These techniques for winning and adjusting odds are actually quite common.
For example, the return trend chart for an option sell strategy looks very similar to the level bet in the chart above.
The difference between these two methods. Suppose the odds are 1 to 1, the winning rate is 50% (the expected value is 0), and there are 2000 transactions.
What is the probability that you will go b Win Cityroke if you invest in the 0.1% level betting method from the beginning? The answer is that the horizontal betting method has a 35% chance of going bankrupt. High?
Out of 100 people, 65 people will make money because of this method, but 35 people will go bankrupt. However, if you invest 0.1% of the reverse betting method, the probability of bankruptcy is 0!
It is even difficult to drop below 80%.
(But since the expected value is assumed to be 0, it will not grow) You can also adjust the percentage of the reverse betting method,
You’ll discover why most trading books,
It will require traders to lose funds in one go, no more than 1% of the total funds.