Quote:
Originally Posted by Thremp
Do you not understand that any variance = busto?
LOL, you're funny. All this time I thought you just liked being an ass, but it's finally clear that you're just trying to amuse us.
I obviously understand that big losses can mess it up. Did you even take a look at the formula I provided? I said right then and there
that r can be viewed as a random variable (i.e. it has a variance). But just having variance doesn't mess anything up, it just adds a random component. The variance might actually help you if you have a significant upswing. Obviously, a downswing
can be problematic. But that's besides the point, since variance in and off itself is not necessarily a problem, because some years you will have upswings, in others you will have downswings, and
in expectation they'll cancel each other out (I figured someone on a poker forum would understand this).