Well, i've spent the past 2 weeks reading this thread from the beginning and I finally got caught up!
One thing that strikes me about this method and the R:R question that keeps popping up is the comparison to the way a casino runs. I hate to make a gambling comparison, but those Mega-Casinos in Vegas make Hundreds of millions in little chunks time after time. Who cares about the occasional jackpot they have to pay out! They know they have a high probability of winning over the long haul by taking money from people a little bit at a time. They base their business on pure probability theory over time, not on each pull of the handle, which sometimes can result in huge losses (jackpots paid out) for the casino. They still make a mint over time by consistent application of their business plan!
One thing that strikes me about this method and the R:R question that keeps popping up is the comparison to the way a casino runs. I hate to make a gambling comparison, but those Mega-Casinos in Vegas make Hundreds of millions in little chunks time after time. Who cares about the occasional jackpot they have to pay out! They know they have a high probability of winning over the long haul by taking money from people a little bit at a time. They base their business on pure probability theory over time, not on each pull of the handle, which sometimes can result in huge losses (jackpots paid out) for the casino. They still make a mint over time by consistent application of their business plan!