it's strange that one player was able to take the profits that took one year for investors to achieve , I do believe in variance but it's really strange lol
Almost every investor has margin 5X, so when n8 won 23
BTC investors actually lost 115
BTC so its not strange at all to lose 5X when someone hit big. Personally i think margins are not good, but who am i to tell people what to do with their money
What you just said made no sense whatsoever. If he won 23 BTC, how could people possibly lose 115 BTC? Your kelly risk ratio is your risk relative to the BR. If he won 23 BTC, only 23 BTC was removed from the BR. That has nothing to do with kelly, whether a user is 0.01x or 50000x is the same. All it impacts is how much each individual lost (theirInvest*theirKelly/23.00 BTC = amount lost).
And what you reply to me makes no sense at all. Let me(senior member) explain to you(legendary member) how margin 5X works.
Lets say one player has whole global bankroll. And he invested 100 BTC in site. So, when someone win 20BTC he will lose 20 BTC.
Now, lets say that player has invested 100BTC with 5X margin. So, when somene win 20BTC he will lose 100BTC, 20BTC go to player who win and 80 BTC goes to site owners.
All it impacts is how much each individual lost (theirInvest*theirKelly/23.00 BTC = amount lost).
All individual investments make one global investment, right? I didn't said every single investor lost 115btc.
Let site owners correct me if I am wrong.If an investor puts in 100 BTC at 5x margin, the bankroll will be 500 BTC, and the win will be 12.5 BTC. If this 12.5 BTC payout is hit, the investor still only loses 12.5 BTC.
The real effect of margin is how it affects the bet limits, and how much of the share of profits or losses your investment takes. In the same case as before, where the investor puts in 100 BTC but uses no margin,
the bankroll is 100 BTC, and the max bet is 2.5 BTC, making the investment have a much lower risk and reward.
In the first case of 12.5 BTC being lost, the bankroll would drop 62.5 BTC in size, however this bankroll is not all real coins, it's coins on margin, so a "real" drop of 12.5 being paid out makes it drop the "bankroll" value by 62.5, even though only 12.5 real coins have moved.
In a case with multiple investors on the site, say, one with 100@1x, and another with 100@5x, we'll have a bankroll of 600 BTC, and a max win of 15 BTC. Let's say someone wins 12 BTC. In this case, the 1x investor makes up (100 * 1) / 600 = 1/6 of the bankroll, so he loses 12 * 1/6 = 2 BTC. The 5x investor makes up (100 * 5) / 600 = 5/6 of the bankroll, so his loss will be 12 * 5/6 = 10 BTC.
In the same case as above, if someone were to lose 12 BTC, the 1x investor would receive 2 BTC, and the 5x investor would receive 10 BTC.
Margin does not in any way make the house directly receive money, we only indirectly receive it from the fact that it increases bet limits, which enables more and larger bets to occur, generating more revenue. Our investors' profit/loss has no effect on our income, only the total amount bet does.
