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Old 10-01-2003, 10:26 AM
BruceZ BruceZ is offline
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Join Date: Sep 2002
Posts: 1,636
Default Re: Min. bankroll without knowning variance.

Hi Jay,

It depends on the risk of going broke that you want and heavily on the exact standard deviation. Say your standard deviation is 24 bb in 1 hr, that would be 12 times your hourly rate, and say you want a 1% risk of ruin. Then you would need a bankroll of -[ 24^2/(2*2) ]*ln(.01) = 663 big bets. The actual bankroll formulas are in this thread:

bankroll formulas

-Bruce
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