ET Fan,

Thanks for the very clear and understandable reply. I always wondered the same thing that double21 is asking.

To sum up your answer, at the moment we take out 1C from the 2C bank, our ROR is the original 3%. However, our lifetime ROR is greater. If we keep doing this, our lifetime ROR increases, but when the bank reverts to 1C, the ROR is 3% FOR THAT BANK. How long we can keep doing this is dictated by the lifetime ROR.

Neko

> If you take a bankroll, C, play to a
> lifetime ROR of X%, double your money to 2C,
> then make a one time decision to remove C
> and continue play in the same fashion, then
> at that point you are playing once again to
> a ROR of X%. If you're comfortable doing
> that, then that's what you should do. Of
> course, in hindsight your ROR was not
> really X%.

> If you decide ahead of time to remove C
> every time you reach 2C, and repeat that
> pattern many times, your ROR is effectively
> 100%. The saving grace is that your lifetime
> is not infinite. So you figure out how many
> times you need to repeat the process to
> sustain your life style, start with a very
> low ROR, and use the formulas MathProf
> provided here and on bj21 to see if you're
> comfortable with the overall ROR. There are
> also some posts archived there with very
> detailed advice re a constant drain on
> bankroll.

> But don't ask what's "safe." VERY
> confusing question to put to a
> mathematician. Gambling for a living is not
> safe at all! You may not like the numbers
> the formulas spit out.

> ETF