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by coldtea
2724 days ago
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>A "1/N" strategy is almost always best with convex strategies (the dispersion property): following point (1) and reducing the costs per attempt, compensate by multiplying the number of trials and allocating 1/N of the potential investment across N investments, and make N as large as possible. This allows us to minimize the probability of missing rather than maximize profits should one have a win, as the latter teleological strategy lowers the probability of a win. A large exposure to a single trial has lower expected return than a portfolio of small trials. Isn't that YC Combinator in a nutshell? |
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