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Old 06-14-2005, 11:16 PM
gaming_mouse gaming_mouse is offline
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Default Re: Advanced Sticky Bonus Questions

Izverg,

Thanks for the responses. I'm still reading over them as well as over the articles you linked to, but I'll start with my first question:

So we need another parameter of merit: RTTmax -- your risk tolerance threshold for an infinite hourly wage.

If you know that your RTT(winrate=$200/hr)=$20,000 and RTTmax(winrate->inf)=$40,000 (for example) then you can quickly figure out that you should give up 50% of EV to eliminate variance. In general, you will get an earning equivalency graph that will look like this (blue line corresponds to the values in the example).


This confused me. If your bankroll was determined by some massive simulation of billions of hands played out over the course of a minute, say, then you will be either busted out or essentially infinitely wealthy. So what is RTTMax?
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