how many bets?

Discussion in 'Trading' started by gametheory, Nov 1, 2008.

  1. Let's say I have a stake of A dollars. I make of series of bets, each of which risks B dollars. So, the maximum number of consecutive losing bets, assuming one starts losing immediately is C = A/B (without the remainder). The probability of each bet winning is D%. The probability of not busting out over a long series of bets is E%.

    Can anyone come up with a generalized formula relating these terms?

    For example, how much can one risk per bet (B), on a $100,000 stake, where each bet has a 50% chance of winning, and a 98% chance of not busting out is desired?