Providing your betting bank is an amount you can cheerfully afford to lose, I'd say the rational thing is just to carry on through bad periods.
Worst case scenario = You lose your bank or have a huge drawdown
Best case scenario - You come out of the drawdown and make decent money.
People seek certainty, but like the blue in the sky, it's an illusion. If you want a guarantee, buy a toaster.
J
ruthlessimon wrote: ↑Sun Mar 11, 2018 5:41 pm
Let's say we have a day of 10 straight losing markets: Is that simply the expected probability of a longterm edge? (i.e. edge shouldn't be changed, nothing was learned, this was expected) Or was there a bias on the day? (i.e. edge needs to be adjusted to incorporate this new info). How do we tell the difference? Analysing every turn of the market, & you risk never seeing the bigger picture. At the same time, a huge dataset, will be extremely slow adjusting to genuine changes in the market. There has to be a balance