thoughts on volatility

kewljason

Well-Known Member
Looking over my records of the last 7 years I have a few thoughts I wanted to share regarding what I call volatility. For the first 5 and a half years, the majority of my play took place in AC, playing mediocre (at best) 8 deck games with about 2 cut off and later 6 deck games with about 1.5 cut off. Occasionally you could find better if you looked hard, but not much better. I am not a 'chart guy' but if I was to make a chart, it would show a steady incline. Slight, to be sure, with a small 'win rate', but steady for the most part with minimal peaks and valleys.

16 months ago, I relocated to Vegas, where I have had access to some slightly better games. I play a lot of 6 deck games with a deck and a half down to 1 deck cut off and occasionally some decent double deck games. I realize the estimated 120,000 hands during this 16 month period is a small sample. Probably too small to draw any conclusions from, but I find myself doing so anyhow...:laugh: While my 'win rate' has improved slightly, the thing that really caught my eye was the volatility. Huge swings, both up and down, that I was not accustomed too. I assume these swings are the results of more frequent high counts, resulting in max bets. While this is good for your long-term win rate, it apparently is bad for volatility.:eek: While I am starting to get used to these incidents, it is trying and you better be substantially bankrolled.

I can't help but think, If I encountered such swings early on in my career, while playing small stakes and under-funded, I wouldn't be here doing this now. So while those of us that tackled or still tackle the AC games, often talk about how bad they are, and no doubt, they are, maybe it isn't the worst place for a player with limited bankroll. That was my experience anyway. :eek:
 
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psyduck

Well-Known Member
Jason,

I assume you were plotting $ amount vs time. Did you increase your bet size later in your career since you moved to Vegas? If so, I think the increased bet size should cause those larger ups and downs. Make sense?
 

kewljason

Well-Known Member
Yes, bet levels grew over time and of course that would cause larger swings. That is why for comparison sake, we speak in terms of units. ;)
 

psyduck

Well-Known Member
kewljason said:
Yes, bet levels grew over time and of course that would cause larger swings. That is why for comparison sake, we speak in terms of units. ;)
What I meant to say was the larger swings you mentioned in the first post might be due to your increased bet size instead of the different games. Just my thought.
 

zengrifter

Banned
kewljason said:
Huge swings, both up and down, that I was not accustomed too. I assume these swings are the results of more frequent high counts, resulting in max bets.
Underscoring the paradox: We have our biggest losing sessions when we are playing the best games. zg
 

blackjack avenger

Well-Known Member
Deviation Delusions

In the short term the better games add variance. In the long term they lower variance.

Look at hourly SD of a great game vs a weak game to see the variance increase in the short term with the better game.

Look at the NO of a great game vs a weak game to see the variance decrease in the long run with the better game.

It takes time and some hands played for the better game to prove itself.

:joker::whip:
good cards
 
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