Correct. Which is why risk management and diversification are crucial and why you should never bet more than you can afford to lose. I have this as an implicit rule, but I should have mentioned it. Thank you for pointing this out.
Edit: And I should probably read up more on the Gambler’s ruin. I can see how expected value maximization doesn’t hold up in the extreme cases, but it had to be pointed to me first.
Correct. Which is why risk management and diversification are crucial and why you should never bet more than you can afford to lose. I have this as an implicit rule, but I should have mentioned it. Thank you for pointing this out.
Edit: And I should probably read up more on the Gambler’s ruin. I can see how expected value maximization doesn’t hold up in the extreme cases, but it had to be pointed to me first.