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Lesson 4 of 5

Variance: why a 70% tip loses three times in ten

3 min read · Beginner · Updated 2026-10-21

In one sentence
Even a correct 70% tip loses three times in ten, and losing runs are part of the maths.

If an estimate says 70%, it also says 30% to lose. The 30% is not an error. It is part of the forecast and it will show up.

A loss is almost certain across a series

For every tip in a day to win, each one has to win. At 70% per tip, the chance of at least one loss in N tips is 1 − 0.7^N.

Chance of at least one loss (70% tips)0%25%50%75%100%30%166%383%597%10Number of tips
Across ten 70% tips the chance of no loss at all is only 2.8%.

How many losses are normal

In 100 tips at 70% you expect 30 losses. The standard deviation is √(100 × 0.7 × 0.3) ≈ 4.6. So a range of roughly 25 to 35 losses is ordinary, and a value slightly outside it does not prove the model broke.

Losing runs worry people more. A rough estimate for the longest losing run in 100 bets with a 30% loss chance is three to four in a row, and five or six is not rare. It does not mean anything changed.

What changes in practice

  • One month of results says little. A small sample can swing either way.
  • Profit does not move in a straight line. A sound system has losing stretches and your bankroll has to survive them.
  • Raising the stake after losses fixes nothing. Each bet has the same probability whatever came before.

The last point is the gambler's fallacy: the idea that a win is "due" after losses. Matches do not remember your slip.

On protecting a bankroll from variance, see stake size and Kelly.

Check your understanding

1. How likely is at least one loss among 5 tips at 70% each?
1 − 0.7^5 ≈ 83%.
2. After three losses, the chance that the next 70% tip wins:
Matches are independent. They do not remember what came before.

18+ only. Educational information, not betting or financial advice.

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