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@ Henrik Ekenberg
2025-06-09 13:11:33
In casinos and financial markets alike, success hinges on maintaining a positive statistical advantage—or “edge”—over a sufficiently large number of trials.
For casinos, the edge is built into the rules of each game; it is the mathematical assurance that, over millions of spins, hands, or rolls, the house will collect more than it pays out.
For traders, an edge emerges from carefully constructed strategies—quantitative models, fundamental insights, or both—that offer a statistical expectation of profit over time. Yet, both realms must grapple with short-term variance (“luck” in the casino context, “drawdowns” in trading) and the potential for anomalous outcomes that defy expectations.
In both environments, operators deploy rigorous statistical monitoring to distinguish ordinary fluctuations from genuine threats to their edge: cheating or mechanical errors in casinos; changing market regimes or model breakdowns in trading.
https://nostrrelay.cloud/b93959572e8972bb8357061d42790c7817ab6c2db3ee49923fcc73e6f75d147b.mp3