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Question about D’Alembert Strategy


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Guest A_hunnet
Posted

Strategy is Start $1, Lose bet $2, Lose bet $3, win bet $2, Lose bet $3, Lose bet $4, win bet $3. (+1 on loss, -1 on win)

Strategy is structured to cover highest loss plus 1 unit, so when you have wins=losses, you will be +1 from each win.

I want to know the optimal stop loss at any given time. This is not easy for me to determine, and I’ll explain why. I will use a difference of + 10 losses over wins as an example. 

Start -1 -2 -3 -4 -5 -6 -7 -8 -9 -10 = -55

10 wins 20 losses = +$10 from win -$55 = -$45

100 wins 110 losses = +$100 from wins - $55= $45

1000 wins 1010 losses = +$1000 from wins - $55= $945

As you can see if I set a standard stop loss of +10 losses over wins it will not have the same outcome at a given point of the session.

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