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Old 11-06-2007, 11:50 AM
pzhon pzhon is offline
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Join Date: Mar 2004
Posts: 4,515
Default Re: Story of Variance and Tilt

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I play 20 to 30 5 to 20 table MTT SNG on Stars weekly and have run around a 15% ROI over last 700 or so

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That's too few to have much confidence in the 15% ROI figure.

The standard deviation of a 45 player SNG is 2.8 buy-ins if your finishes are evenly distributed, and the standard deviation is 4.8 buyins for a 180 player SNG. Winning players may be expected to have slightly higher standard deviations, but let's ignore that. The standard deviation of your ROI after 700 tournaments is between 280%/sqrt(700) and 480%/sqrt(700), between 10.5% and 18%. Call it 14%. A 95% confidence interval would be from -13% to 43%.

While you have some evidence that you are a winning player from those results, it wouldn't be much of a surprise if your ROI were 5% instead of 15%. A common cause of frustration is to set your expectations too high by hoping that an initial good streak represents your true win rate.

It takes many more MTTs than STTs to determine whether you are a winning player, and to estimate your win rate accurately.

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generally profiting 200 to 300 dollars per week for my efforts.

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For you to be making $10/tournament with a 15% ROI, the buy-in needs to be $60. Is that what you are doing, or did you state the wrong number of tournaments?
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