I remember a very lively thread lately discussing if you take money out of your bankroll every time you double it, and the consensus seemed to be you need those "positive swings of variation" to overcome the inevitable negative swings of variation. So my question is what if you don't just take money out of your bankroll every time you double, but a fixed amount per month? This seems reasonable, because you would ideally want to be able to spend some of your winnings every month (or year) on something.
So if you have a $30k BR and extract $100 every month, your "effective" bankroll will probably still be around $30k. Based on http://www.bj21.com/bj_reference/pages/renewablebankrollformula.shtml it actually would be $26k assuming you play 40 hours per month, full Kelly.
Now the formula in the link above seems reasonable, except when you extract too much money from you bankroll the value becomes non-real (square root of a negative number).
In the example above, if you try to "extract" $200 every month, it goes to $20k, but if you try to "extract" $300 every month the equation doesn't work.
So is there a reasonable amount people are willing to "spend" from their bankrolls? Otherwise I suppose you can ask what's the point of making this money, unless you're using this for retirement and are going to completely stop playing at some point!
So if you have a $30k BR and extract $100 every month, your "effective" bankroll will probably still be around $30k. Based on http://www.bj21.com/bj_reference/pages/renewablebankrollformula.shtml it actually would be $26k assuming you play 40 hours per month, full Kelly.
Now the formula in the link above seems reasonable, except when you extract too much money from you bankroll the value becomes non-real (square root of a negative number).
In the example above, if you try to "extract" $200 every month, it goes to $20k, but if you try to "extract" $300 every month the equation doesn't work.
So is there a reasonable amount people are willing to "spend" from their bankrolls? Otherwise I suppose you can ask what's the point of making this money, unless you're using this for retirement and are going to completely stop playing at some point!