Re: Geometric mean in poker?
Geometric mean is used to calculate PERIODIC "investment" returns over a finite horizon. For one EV calculation, it is irrelevant.
Anyway you must clarify what your period is. Are you calculating % returns per session, hand, 100 hands, week?
And what is your base? Is your initial investment your 100bb buyin, your bankroll, your s&g entry?
The best instance to use geomean is for s&g's or on your total bankroll. For a set of s&g's of varing buyin amounts, take a geomean using each s&g's individual ROI. Unfortunately, this seems meaningless. I just think in terms of opportunity costs. Either, i could make more/hr than a 9 to 5. Or if i invested my bankroll in govt bonds, which has a better modified Sharpe ratio: [Expected Return - Risk Free Return]/(Standard Deviation of Expected Returns - stdev risk free securities). FYI, S&P 500 has a sharpe ratio of ~.50.
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