[rauchster]

Originally Posted by hi19hi19

No, I would figure this would require millions, even billions of bets to begin to play out in a predictable fashion. Explain to me why not.

And even then, with the house taking 1%, you're ****ed anyway

Because when you play off streaks, you are only playing off the length of the streaks, not the length of everything.
You're betting against the length of the streak.
You devise a betting strategy that allows you to win off of the most common, smaller, streaks. I.E.: 1-2-3-4-5 long losing streaks.
Since the higher streaks are less common, you make the previous strategy work out so that you break even or marginally win/lose the bigger streaks.

Or you can do this the opposite, and devise a strategy that does marginal on the lower streaks, but wins huge on the longer streaks.

Either way works.

I chose a strategy that wins marginally at 1-2-3-4 loss streaks, loses marginally on 6-9 loss streaks, and wins big on 5-7-8-10 streaks.
And since every win streak is a win regardless, that and the marginal wins after 1-2-3-4 loss streaks helps offset any marginal losses at 6-9 loss streaks.