You are still wrong
> The probability of winning *EXACTLY* N in a row would be PW^N*PL; similarly for losing *EXACTLY* N in a row: PL^N*PW. <
You are correct. I misspoke (mistyped?), writing it on the fly. Those are the formulas I formerly used when I thought as you think. It�s been a long while since I used those old, incorrect, formulas.
> No, of course not. For N > 1 there is the possibility of winning some of the trials and losing some. <
What?!!! When looking at runs and losses of EXACTLY N in a row, these are mutually exclusive events each with its own unique probability. There is NO possibility of overlap.
I�ll say this again: go to your spreadsheet program, use your incorrect formulas, total up the probs for all events (within reason � say 100 of each) and observe the inescapable fact that the sum is nowhere near 1.0.
But, when you use the CORRECT math -- math that is confirmed by numerous trials -- the sum of all probs always equals exactly 1.0, as it should and as it MUST.
> Getting back to your original post, there are two things that bother me. First, if you calculate your expectation for a series of independent trials over all possible outcomes, your result should always equal your average bet times your advantage - regardless of your betting scheme. <
That is correct. The fact that exactly half or your runs will be winners and exactly half of your runs will be losers has NO effect on ROI. Your error is assuming that it must.
BUT, you can only understand how one progression could outperform another when you know the CORRECT math governing the occurrence of runs of various lengths. This is not to say any progression can ever achieve a positive outcome. It�s just that some progressions are slightly less negative than others.
> Second, in blackjack, you lose more hands than you win and (consequently) you have longer losing streaks than winning streaks on average. I believe you'll have a hard time trying to dispute these facts. <
That�s funny, I don�t recall disputing those facts. In fact, I actually cited them (remember the 0.90476 discussion?). Your error is in assuming that there is an inconsistency here.
Think about it:
(1) Equal number of winning and losing runs;
(2) Average length of winning runs shorter than that of losing runs.
Ergo, more hands lost than won and NO conflict and NO inconsistency.
> If you want some help debugging it feel free to send it. :-) I'm sorry, but as far as I can tell your results contradict the mathematics. And my money is riding on the mathematics.<
Nobody likes a smartass :-) But I�m afraid both your ignorance and your arrogance are showing. Sad that an otherwise intelligent human being would be so close minded. I will send code on request only.
You can: (A) keep your head in the sand and hold to your faulty assumptions; or (B) actually LEARN something. Your choice.