Overall Risk of Ruin When Investing Bankroll

#1
I'm using the following RoR formula:

e ^ (-2 * WR * BR ÷ VAR)

WR = win rate
BR = bankroll

Suppose, since I don't require high liquidity with most of bankroll, I want to invest I% of BR in stocks. BR - I will either be in a savings account (considered 0% risk) or in cash.

I have estimates forVAR and "WR" of my portfolio.

How can I calculate my true / compounded risk of ruin?

Thanks.
 
#2
Real World Results

The math formula just escapes my memory.

However, this can work:

Whenever you go to play bj calculate your ror and bet ramp based on actual funds.

If the other investments have a lot of variance then that will cause your bj bets to vary greatly, not good for bj.

If the other investments are very stable then your bj bets won't vary greatly, which is better for bj.

:joker::whip:
 

tensplitter

Well-Known Member
#3
Investing 1% in stocks is pointless. 1% of 50,000 is a mere $500. Now investing 10% is more meaningful, but you have to be prepared to liquidate your entire portfolio at any time. A few hours of blackjack a week, every week for a year, will outperform the stock market.
 
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