Hi All,
I need some advice regarding the appropriate amount of units to have in one's bankroll if only betting 1 unit per selected game. For example, if I intend to bet $100 on a selected game, how much should I have in my total bankroll to have a risk of ruin of 1%?
A formula from a poker book (The Mathematics of Poker) I have regarding the risk of ruin for outcomes that follow a normal distribution is as follows:
R(b) = exp{ (-2*mu*b) / sigma^2 }
Where R(b) is the formula for risk of ruin, mu is the winrate, b is the size of the bankroll, and sigma^2 is variance.
I'm having trouble working out what a way to work out an expected winrate (mu) and variance (sigma^2). I will only be placing bets for the sake of making money and not just action. Any help on this would be appreciated.
I need some advice regarding the appropriate amount of units to have in one's bankroll if only betting 1 unit per selected game. For example, if I intend to bet $100 on a selected game, how much should I have in my total bankroll to have a risk of ruin of 1%?
A formula from a poker book (The Mathematics of Poker) I have regarding the risk of ruin for outcomes that follow a normal distribution is as follows:
R(b) = exp{ (-2*mu*b) / sigma^2 }
Where R(b) is the formula for risk of ruin, mu is the winrate, b is the size of the bankroll, and sigma^2 is variance.
I'm having trouble working out what a way to work out an expected winrate (mu) and variance (sigma^2). I will only be placing bets for the sake of making money and not just action. Any help on this would be appreciated.
