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Old 12-07-2005, 11:33 PM
AaronBrown AaronBrown is offline
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Join Date: May 2005
Location: New York
Posts: 505
Default Re: Profit per Standard Deviation

Profit per Standard Deviation is known as Sharpe Ratio (after Professor William Sharpe, one of the pioneers of modern finance). In finance, you subtract the risk-free rate from profit, but this is insignificant in poker.

This makes sense if your bankroll is the limiting factor in how much poker you can play. If you have plenty of money but value your time, profit per hour makes more sense. If you have plenty of money and time, but can't find good high stakes games, pure profit is a good criterion.
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