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Old 07-01-2004, 07:30 PM
Homer Homer is offline
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Join Date: Sep 2002
Posts: 5,909
Default Re: Chances of breaking even

[ QUOTE ]
Can someone help me calculate the chances of breaking even or losing over an extended period of time for a given WR and SD?

I vaguely remember a post with the formulas here in the past, but I can't seem to find it using the search function.

[/ QUOTE ]

EV (after x hours) = EV*x

SD (after x hours) = SD*sqrt(x)

Probability of breaking even or being behind is N(-EV/SD), where N is the normal distribution.

So, it's N([-EV*x]/[SD*sqrt(x)]), or N([-EV/SD]*sqrt(x))

The easiest way to solve is by using the <font color="green">=normsdist()</font> function in Excel.

I hope you're enjoying California.

-- Homer
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