View Single Post
  #158  
Old 07-26-2005, 12:31 PM
Derek in NYC Derek in NYC is offline
Senior Member
 
Join Date: Jun 2004
Posts: 130
Default Re: Your ENTIRE bankroll on AA...do you do it?

[ QUOTE ]
if I lost my roll I'd be back at .5/1 making minimum wage. so if I lose I lose 250-300 an hour for a looooooooooong time.

[/ QUOTE ]

This is exactly correct. You can calculate the EV of this proposition bet through the following formula. (The formula assumes you are playing a dominated pair, and that if you win, you get a bigger bankroll, but you dont step up into a higher earning game. It also assumes that if you lose, you will need to rebuild, and that you will therefore suffer an opportunity cost from not playing your normal game):

EV = (80% x BRtotal) - (20% x BRtotal) - (20% x opportunity cost of going bust)

The problem with the people saying it is a clear yes, is that they are putting no value on the opportunity cost you will suffer if you go broke.
Reply With Quote