Re: Why do SNG\'s have less variance?
[ QUOTE ]
I don't see anything in there about the variance in cash games.
[/ QUOTE ]
Well I am not a statistician but I can give this a shot.
If I miss the mark on this post then the flames from the experts will clear things up. [img]/images/graemlins/blush.gif[/img]
SNG's are sort of like a reasonable option in the stock market. You risk one buyin to win up to 4. Low risk medium return.
A MTT is like a high risk option. You risk one buyin to win up to one hundred buyins. High risk, high return.
A NL cash game your whole stack is at risk. It is possible to triple or quadruple your stack in one hand but not likely. The risk to reward ratio is different. Higher risk, higher reward. A good NL player is one who has in my opinion limited his risk of loss while retaining his chance of gain. I would assume that the average gain is less. I put my whole stack at risk and villain folds I win less than I risked. Hence higher variance.
In Limit games it is similar but you are not gambling with your whole stack. Still your opponents are typically getting correct odds to chase draws and a in my mind you are more or less on one side or the other of a 4 to one or 5 to one bet on the turn and river in Limit. Coming out on the wrong side of that equation can lead to serious swings.
Just a few thoughts...Flame away.
--
tjh
|