10th May 2002, 10:25 AM
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Member
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Join Date: Jan 1970
Location: Canberra
Posts: 730
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No offence Bhagwan but before anyone uses your plan I suggest they do some study in basic statistics and mathematically theory. All the staking plans you advocate WILL NOT WORK in the long run unless your average dividend multiplied by your strike rate is greater than 1 (in which case you can win more by betting with even stakes). For example if average div is $2.00 and strike rate is 45% then you will lose money (2 * .45 = .9), average div of $2.00 and strike rate of 55% is OK (2 * .55 = 1.1). This is basic mathematics and increasing your stakes does not overcome it - it just increases your long term losses. If you have a plan that gives a strike rate * ave. div. of greater than 1 then I am sure we would all love to hear about it.
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