When people are asked to invent data representing 200 coin tosses, they often do not add streaks of more than 5 because they believe that these streaks are very unlikely. [4] This intuitive belief is sometimes referred to as the representativeness heuristic. In a classic martingale betting style, gamblers increase bets after each loss in hopes that an eventual win will recover all previous losses. The anti-martingale approach, also known as the reverse martingale, instead increases bets after wins, while reducing them after a loss. The perception is that the gambler will benefit from a winning streak or a ”hot hand”, while reducing losses while ”cold” or otherwise having a losing streak. As the single bets are independent from each other (and from the gambler's expectations), the concept of winning ”streaks” is merely an example of gambler's fallacy, and the anti-martingale strategy fails to make any money.
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