We're always used to compounding in the positive progression sense, but recently I've been bugged by negative-progression compounding.

What I mean is:

- Using large "divisible" units (at least divisible by 10)

- Using negative progressions such as the Grand Martingale.

- Re-investing units earned to grow the base unit in order to derive larger net returns on the positive runs, while keeping the bad runs losing units at the regular (not inflated) rate.

I know the long term is against, but we can make MM schemes such as to last longer under "regular" game conditions, and/or use it as part of other strategies (i.e. acting as very defined recovery for another method).

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Before embarking in such exploration myself, just wanted to tread the waters for previous work -if any.


Anyone?

You can not compound on negative progression because negative progression relies on earning 1 unit somehow like martingale or grand martingale. If u say start with even 100 units and with grand martingale got to 102, what kind of compounding do u expect to do from it?
                              Asking this question is like asking how to spread fire by sprinkling water on it? 

Quote from: albalaha on January 01, 2013, 03:59:33 AM
You can not compound on negative progression because negative progression relies on earning 1 unit somehow like martingale or grand martingale. If u say start with even 100 units and with grand martingale got to 102, what kind of compounding do u expect to do from it?
                              Asking this question is like asking how to spread fire by sprinkling water on it? 

Hello dear Sumit, you CAN compound the unit size 

Please check out the investopedia definition. It is very clear:

Quote
Definition of 'Compounding'

The ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings. In other words, compounding refers to generating earnings from previous earnings.

Read more: http://www.investopedia.com/terms/c/compounding.asp#ixzz2Getz4p42

Even units won with good ol' martingale can be compounded

Vic,
           It talks about investment and not gambling. In gambling, u do not lose a percent of  your bet in one go, u lose all.