The mechanics of an edge
- Thread starter bklynkid222
- Start date
bklynkid222,
One correction: if you bet $1 2/3rds of the time, and $10 the remaining 1/3rd of the time, then your average initial bet is ($1+$1+$10)/3 = $4. Since you are winning $0.0132/rd, your Initial Bet Advantage (IBA, also frequently called EV) is ($0.0132/$4)*100% = 0.33%.
If you think about it, how can your EV be 1.32% when your maximum one-round EV is only 0.5%?
Hope this helps!
Dog Hand
One correction: if you bet $1 2/3rds of the time, and $10 the remaining 1/3rd of the time, then your average initial bet is ($1+$1+$10)/3 = $4. Since you are winning $0.0132/rd, your Initial Bet Advantage (IBA, also frequently called EV) is ($0.0132/$4)*100% = 0.33%.
If you think about it, how can your EV be 1.32% when your maximum one-round EV is only 0.5%?
Hope this helps!
Dog Hand
Thanks Dog Hand, I guess I would answer that it's because of raising the wager during that +1/2 %?? Yeah, I'm still a little mixed up to a degree because, and perhaps I am mistaken, When a person tries to verify an EV they should always be able to ( I think) prove it by using the gross dollars put into a system multiplied by the EV multiplied by the number of hands played and come up with an average win rate of Dollars or units per "X" number of hands played. For example, if I play a method which Really has a + 2% overall edge, I expect that for every $1000 that I process into the game, I should "earn" on average $20 over time. However when I do the calcs from my example you cited above I get this::
the proposed +1.32% EV versus the following based on money put into the game 66 x $1.00 = $66.00 + 33 x $10.00 = $330.00 = total cash put in
of = $396 over 100 hands. If the EV is really +1.32% then shouldn't my average earing rate be $5.22 per 100 hands??? 396 x .0132 = $5.22. It's so basic yet somehow a little confusing.
the proposed +1.32% EV versus the following based on money put into the game 66 x $1.00 = $66.00 + 33 x $10.00 = $330.00 = total cash put in
of = $396 over 100 hands. If the EV is really +1.32% then shouldn't my average earing rate be $5.22 per 100 hands??? 396 x .0132 = $5.22. It's so basic yet somehow a little confusing.