Roulette is an perfect example of negative expactation game. House has an advantage in each game you play (2.7% in case of european roulette and 5,3% in case of american roulette).No matter which betting system or money management you want to use you will broke at the end with 100% certainity in case you will not stop playing at some moment. There is great article on wikipedia regarding popular martingale system which shows why it is imposible to win in the long run even with this system.
But there is one way how it is posible to earn moeny even if it doesn't make sense to play roulette. The thery is simple - you need to have absorbing barier. It is posible to come to casino with 100$ and realistically expect to win for example 20$ - in case you will put al of your 100$ (or main part of it) in risk for that 20$ (divide 100$ to 5 stakes and put each on one Six Line). It is stil negative expectation game - if 1000 players come to casino then casino will get their part of the profit as around 18,9% of players will lose their 100$ and 81,1% of players will leave with 120$ (which yield profit 18.9% * 100 * 1000 - 81.1% * 20 * 1000 = 2 680$ for casino). But nearly 81% of players finished with profit.
Does it make sense to engage is such activity. Not at all. You risked 100% of you money to get 20%. Risk for doing so isnt worth the outcome. Your probability for winning 20$ is 81,1% (30/37 in european roulette with one 0) and your probability for losing 100$ is 18,9%. What is expected outcome?
81.1% * 20 - 18,9%*100 ~ -2,68$
So it is negative expectation game and longer you will play it more probable it is that you will broke. But it is possible to gain positive revard on short time frames.
So there is a posibility to gain some money on negative expectation game in short periods of time simply due to a luck. Do you see here some paralel between financial world and gambling world?
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