Re: Get serious about measuring your performance: Sharpe Ratio
Rate doesn't matter, it only matters in an environment with changing interest rates when your choice is either invest risk-free or invest with manager x.. you can apply the same philosphy, in some way, to poker, but I think the measure is better utilized to simply capture volatility and risk for a given player and given style as compared to his peers. In finance, you need to back check this calc across different periods which all have different risk free rates so you need to be adjusting the figures to compare apples and apples. In this case, for poker, I think it is best used simply as a matter of volatility given the same profit level/winrate.
CT, thanks - I will check it out.
|