11-05-2005, 11:30 PM
Following the bankroll requirement and risk of ruin equations:
var=SD^2
B = -(sigma^2/2u)ln(r)
r = exp(-2uB/sigma^2)
where u is your hourly rate
sigma is your hourly standard deviation
r is your desired risk of ruin
B is your bankroll
What other factors do we need to consider when determining a bankroll for tournaments?
How does ROI and ITM% affect this?
The obvious answer is that it affects your variance.
So how do we determine variance and standard deviation for tournaments?
Is variance still simply the average of the squares of all results, and winrate total $won/#tournaments?
And we use these numbers in the above equation?
var=SD^2
B = -(sigma^2/2u)ln(r)
r = exp(-2uB/sigma^2)
where u is your hourly rate
sigma is your hourly standard deviation
r is your desired risk of ruin
B is your bankroll
What other factors do we need to consider when determining a bankroll for tournaments?
How does ROI and ITM% affect this?
The obvious answer is that it affects your variance.
So how do we determine variance and standard deviation for tournaments?
Is variance still simply the average of the squares of all results, and winrate total $won/#tournaments?
And we use these numbers in the above equation?