Re: An In Depth View of Tournament EV and Short Term Variance
I think that your friend is looking at things the wrong way.
In many settings, like Finance, you take the EV of a situation, and adjust for risk (Sharpe ratio, Information ratio, etc, etc) Basically EV / Variance.
I dont see a problem valuing cash game decisions the same way. EV is good, risk is bad. Fair enough.
For MTTs, it just doesnt line up so neatly. Given the skewed distribution of payoffs, I think that a case can be made that the highest series of EV/VAR plays is very far from optimal. In some cases, I think the best play will be the higher variance option.
Now, wether or not you can get into -CEV plays or not, is questionable. I really dont know. But I think your buddy isnt realizing the inherent value of variance in and of itself in a MTT
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