Stupid beginner question

saxhoe · #1 12-13-2004, 08:27 PM

Does 50% ROI playing $10 sng´s mean that you win $15 on average?
I've played about 40 SNG's and finished in the money 25 times and 1st 17 times. Is that just luck or have I misunderstood the statement that 25-35% is good ROI?
Please help/ Newbie [img]/images/graemlins/confused.gif[/img]

tigerite · #2 12-13-2004, 08:29 PM

50% ROI would mean you win $5.50 per tourney (5.50 / 11 = 0.5). You are winning 15/11 which is 136.36% ROI (and completely unsustainable, but great job [img]/images/graemlins/laugh.gif[/img] )

That is if you are saying it's $15 NET profit per tourney. Obviously if you're only winning $15 total that means a NET profit of $4, but I can't believe it would be that low with 17 1st places out of 40.

tigerite · #3 12-13-2004, 08:33 PM

Actually I am not quite sure how you come to this figure of $15 profit per tourney, even if you only won 17 out of 40 and finished out of the money in the other 23, that is 17*$39 / 40 = net profit $16.575 on average. With your other ITM finishes this must be even higher still.

saxhoe · #4 12-13-2004, 08:36 PM

OK thank u very much. And I thought I was the God of poker... [img]/images/graemlins/crazy.gif[/img]
First post done though. Was a little bit nervous...

saxhoe · #5 12-13-2004, 08:38 PM

Ah I just made an example. Doesn't even know how to figure out the ROI.

tigerite · #6 12-13-2004, 08:41 PM

Maybe I am working it out wrong, though. Working it 'the other way' the money you get returned from 17 wins is $850, minus the fees of $440 is $410, divided by the $440 is ROI 93.18%.

KingOtter · #7 12-13-2004, 09:41 PM

Return on Investment is calculated by (winnings - cost) / cost, or profit / cost.

Basically it figures out how much you expect to get back from every dollar you put in. If you have a 65% ROI then you expect 1.65 to be returned to you for every dollar you put in. That's an incredible return rate.

So you figure out how much you made, and divide it by how much you put in. In this case 1.65 - 1.00 = .65. Divide it by the $1.00 you put in gives you .65, or 65%.

KO

P.S. Yes, you need to include the Fees in the cost of it... so a $10+1 costs $11.

tigerite · #8 12-14-2004, 06:04 AM

That's what I did.. 17 wins at $10+$1 level gives you $850, minus the cost which is $11 * 40 = $440, or $410, divided by the cost which is again $440..

lacky · #9 12-14-2004, 08:08 AM

maybe u r the god of poker. You welcome to find out at any $55 table I'm at....
lol, just kidding. Play a couple hundred at $11. If you are still doing well move to the $22's, play a couple hundred, etc. Study and concentrate. You can't keep doing as well as you are, but there's no reason you cant keep doing well. Be ready for the long downswings though. I just went through a 160 game strech of no profit, and was down 23 buy-ins at my low point. It can be descouraging.

Steve