Honestly house edge doesnt even matter that much, you would lose even with 0% house edge using martingale.
Well, this is interesting.
My gut reaction upon reading that was that you are wrong: with 0% house edge you are equally likely to double-up or bust. Because with a 0% house edge the casino's expected profit is 0 regardless of how you play.
So I wrote another simulation. It simulates a player with 15 chips using martingale, starting with bets of 1, doubling on loss, betting at a 0% edge casino.
To my surprise he doubles up 38% of the time and busts 62% of the time.
Can anyone explain how that could be? Is the casino actually making a decent profit from this 0% edge game? I don't believe it.
Something's wrong. House can't win almost 2/3 of the time if it has 0% edge. It would mean that it is possible for the house to lose 2/3 time with 0% player edge. Something like that would be exploited by now.