Re: Quantifying the profitability of the short-stack strategy
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What you should really be talking about is comparing winrate to stdev(or variance). That would be an interesting metric to investigate.
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This isn't an "interesting metric to investigate," this is the central metric to bankroll management and other long-term variance considerations. Even if you win a ton of money, if your winrate/SD ratio lower than .05, you will occasionally have losing years. With a winrate/SD ratio higher than .20, you're unlikely to ever have a losing month.
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Exactly.
So what's the answer.
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