[Sniper]

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the formula he gives for having a bankroll that will grow most optimally is EV/SD

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EV/SD (Expected Value/Standard Deviation, for those who didn't read the article) can be used to evaluate many financial decisions. In fact volatility is a key factor in the options pricing model. However, this conversation hadn't yet reached the point of discusing drawdowns. etc.

The basic assumption, by Desetcat in his post, was a average-good (maybe a 2+2er that actually learned something from the 2+2 books) that could achieve 1.5BB/Hr to start.

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I think that Poker is a hybrid between investing in securities and work, because my primary concern isn't ROI, but rather $/hr (or BB/hr, whatever floats your boat).


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$/Hr is a ROI calculation... Dollars Earned per Hour invested.

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Who do you think does better, a person with $10 bankroll winning $20 in a freeroll after 3 hours of work (200% ROI), or a person with a $1000 bankroll winning $20 in ring games after an hour of work (2% ROI)?


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From a bankroll perspective, the first is better, if each can consistantly achieve the same ROI (bankroll)over the long term, increasing the limits played according to the same parameters... in other words, if you could triple your bankroll every 3 hours you would very rapidly surpass a player earning 2% every hour, even if the 2nd had a $990 head start. In fact in only 15 hours, the 1st person would have a bankroll almost twice the size of the 2nd. [img]/images/graemlins/wink.gif[/img]

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it's just that the amount of money for the diminishing returns to kick in are so high that most regular people never experience it

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Part of the reasoning in my earlier post is suggesting that diminishing returns hit MUCH faster in poker than they do in investing/trading.