Question about Risk of Ruin

Stork · #1 03-10-2005, 07:31 PM

So I think I read somewhere that a 300BB bankroll for a player winning 2(or was it 1?)BB/100 is enough to reduce the risk of ruin to 5%. I don't know the forumula for it though, so can someone tell me the risk of ruin if my bankroll is only 100BBs, assuming I'm winning 2.5BB/100?

elitegimp · #2 03-10-2005, 10:48 PM

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So I think I read somewhere that a 300BB bankroll for a player winning 2(or was it 1?)BB/100 is enough to reduce the risk of ruin to 5%. I don't know the forumula for it though, so can someone tell me the risk of ruin if my bankroll is only 100BBs, assuming I'm winning 2.5BB/100?

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you need to tell us your standard deviation in BB/100 as well (it's somewhere in Pokertracker, and I assume that's where you got your winrate from).

Stork · #3 03-10-2005, 11:17 PM

Hrm, actually I don't have pokertracker, but lets just say standard deviation of 14BB/100, which I think is typical.

gaming_mouse · #4 03-10-2005, 11:37 PM

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Hrm, actually I don't have pokertracker, but lets just say standard deviation of 14BB/100, which I think is typical.

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BANKROLL = -(sigma^2/2*mu)ln(risk)

100 BB should give you 8% ROR given a win rate of 2.5BB/100

Stork · #5 03-10-2005, 11:53 PM

k, thanks.