Who is Edward Thorp?
Edward Thorp is an American mathematical professor, blackjack researcher or player, and hedge fund manager. He founded the modern applications of probability theory. Furthermore, he is a mathematical genius who made himself a multi-millionaire with his intelligent thinking. His blackjack endeavors brought him fame and money.
Beat the Dealer
Thorp is an author of the Beat the Dealer book, which showed mathematically that the house advantage in blackjack could overcome by counting the card. Thus, he created this concept that if the player could maintain a track of the cards already played during the match, it could defeat the blackjack game. Therefore, he showed that a player could beat the blackjack house based on the counting method he designed.
Inventing Wearable Computer
Another interesting fact about Thorp, during his teaching at MIT, he invented the very first wearable computer in the 1960s. They used the instrument to show that Newtonian physics could beat the game roulette. It turned out he was correct; it was possible to beat roulette. The device he invented went inside the player’s shoe and had a radio transmitter that played tones in the player’s ear to offer the player signals where the ball could land.
Testing his Theory
Armed with a winning strategy, Thorp will test his studies by running seriously at the blackjack tables at the casino. He discovered later that he needed somebody to bankroll him. He discovered a rich professional gambler who became his economic backer Manny Kimmel. Later on, Reno and Lake Tahoe were the first stops on their journey where they proved that their blackjack strategies were effective and successful, therefore they win a lot of money.
Thorp eventually moved to Las Vegas, but his capacity to rack up significant wins attracted the security agents. Hence, this caused several casinos to ban and reject him. Therefore, Thorp had to hide and disguise himself to continue to gain admission. Later on, he set up a baccarat team that enjoyed a lot of achievements during that period.
After the Casino Journey
After the book, Beat the Dealer became a sensation. Thorp experiences difficulty to enter a casino without being spotted and rejected. Therefore, he took a break from gambling and switched his focus on investment. In 1967, in a book called Beat the Market, Thorp released his findings and pieces of advice. This book claims to have had a significant long-term effect on the world of investment.
Furthermore, Thorp now enjoys a semi-retirement with his wife and family. Hence, his legacy in the world of gambling is already established. From his selected profession, he gets respect from colleagues. Also, he is a philanthropist who donated millions of cash to charity.