The extended martingale

[maverick528]

The martingale betting system is well known between gamblers, in the most simple form it involves an event with 50% (or near) probability of winning (like tossing a coin), and the martingale system consists in doubling the bet each time you bust, and going back to the base bet when you win.

In a theorethical world, martingale is a perfect system that always wins, IF you have infinite time, infinite bankroll and the size of the bets has no limits.

In the real word if you hit a red streak long enough it eats your bankroll, or if your bankroll is very big, you hit the upper bet limit that casinos specify. 

But you can also win money with the martingale system, if you are lucky and dont hit a long red streak and you stop playing while winning.

Most people also say that martingale is very bad, and also say they never use it, but sometimes they use the martingale system without knowing it. For example in a 10X payout, a betting system that says "increase 10% on each loss, and return to base bet on win" is also martingale.

The key concept for the extended martingale is SURVIVAL. When you hit a long red streak, the most important thing is surviving it with the bankroll intact so that you can continue betting. Profit at that time is not important. Because if you lose all your bankroll on a red streak, and the next bet was a green, not only your profit is 0, you lost all your bankroll. Much better is to win on that green bet 1 satoshi and then continue betting with all your bankroll.

So, instead of using the classical concept of martingale where your profit is the same no matter if you hit on the 1st or in the 10th bet, in the extended martingale you can do one of two things:

1) make the profit to slowly decrease when you get several red bets, until you reach a very low minimum profit, say 1 satoshi for example.

2) set a cutting point. For example, set your profit at 100 satoshis on a winning bet, BUT if you get 10 reds in a row, on the 11th bet and following bets let the profit be just 2 satoshis.

On following days I will add some numerical tables so that you can see the concept in real numbers, comparing what will happen when you hit a long red streak with both methods.

The extended martingale does not guarantee you will win forever, and also does not guarantee you will not bust all your bankroll.

Its just a survival enhancement tool. Red streaks that using the normal martingale would leave you with a balance of 0, and a red profit, using this method they do not produce any harm, and you continue playing normally with all your balance.