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Old 12-13-2005, 11:05 PM
LearnedfromTV LearnedfromTV is offline
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Join Date: Jun 2005
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Default Re: ZeeJustin: A Case Study

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My point is that buying into $250 MTTs has lower variance than the $250 sats. this is certainly true. think about it some before misreading something i said in order to be able to disagree.

Assume a BR requirement of 100 buyins. even if its low as ZJ says, it really doesn't matter for the example. Anyways. for $250 MTTs, you'd need a BR of $25,000. For $2500 MTTs, you'd need $250,000. To play sats, you'd need a BR of close to the bigger event, but maybe say 70-80%. That would be a $175-200,000 BR.

I'm not sure, my math degree is from a U.C. school, not some fancy Ivy league. But i'm still smart enough to be confident in the fact that 175,000 > 25,000.

To me, when tournament A requires a BR of 7 or 8 times the BR needed for tournament B... its pretty safe to say that tourney A has more variance than tourney B

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AHHHHHH! Of course satelliting into events over you bankroll that you would never play otherwise increases your variance! I've said this already, but it's not the point.

The premise is that we're dealing with someone who is bankrolled (or close to it) for the higher buyin. Same guy also plays lower buyin events (in the case of 2500's, it's because they don't run often enough). Because he plays the higher buyin events anyway, to him, every higher buyin ticket he wins is equivalent to cash. So on all those days when there is no higher buyin event avaliable, he can make his decision as to which type of lower buyin event to play without considering the variance of the higher buyin event. Any time he chooses to play the lower buyin event with lower variance, he lowers his overall variance.

To put it in terms of your bankroll requirements. We're talking about a guy with 175-200K who mostly only gets to play 200's. tThe question is which type of 200 is lower variance for him. Since tickets to 2500's are within his bankroll and thus as good as cash to him from a risk perspective, the answer is satellites. As I said elsewhere, granted this is the guy least concerned about variance in 200's, but that doesn't make it less true!
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