Shagatola wrote: "I don't think #3 applies"
The primary issue is taxes. Gambling losses can not legally be carried forward or backward, so any losing year due to variance means an additional penalty in the corresponding winning years, which will be inflated by variance. You don't want to pay tax on variance, if you do it's an additional hit to EV and can easily wipe out the EV you thought you had.
But, you should keep in mind that EV is the long term average result, and is expressed in the long term. Nzero is an indication that you are entering the long term. At Nzero you have about an 84% chance of being a winner and about a 16% chance of still being a loser, that's even with an edge. If you don't have an edge the situation reverses: 84% chance of losing and only 16% chance of winning. It's a simple yet powerful concept, one that merits more than a casual glance in my opinion but as always you are free to define your own rules and ignore what the math says:
vpFREE Bank_NO http://www.west-point.org/users/usma1955/20228/V/Bank_NO.htm
vpFREE Bank_NO http://www.west-point.org/users/usma1955/20228/V/Bank_NO.htm Very early on, upon joining this board, iggy introduced a concept which he references in shorthand as "N0".
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Posted by: nightoftheiguana2000@yahoo.com
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