According to a formula for calculating losing sequences in horse racing based on the player’s past strike rate, we can try to answer the questions below.
How many trades am I going to have before I experience a losing sequence of 1?
Trades = 1 / (1 – 0.75) ** 1 = 4
How many trades am I going to have before I experience a losing sequence of 2?
Trades = 1 / (1 – 0.75) ** 2 = 16
How many trades am I going to have before I experience a losing sequence of 3?
Trades = 1 / (1 – 0.75) ** 3 = 64
How many trades am I going to have before I experience a losing sequence of 4?
Trades = 1 / (1 – 0.75) ** 4 = 256
How many trades am I going to have before I experience a losing sequence of 5?
Trades = 1 / (1 – 0.75) ** 5 = 1024
I really don’t know how valid it is for trading, but it could be a useful little formula.