Get serious about measuring your performance: Sharpe Ratio

[punter11235]

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After reviewing this thread, its hard to ignore how important both increasing your winrate and decreasing your standard deviation are to anyone who relies on poker for a "steady" income

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There are no reliable thigns you can do to lower your std without your game deteriorating.
I believe that idea is nonsense. Just concentrate on playing well.

[mindless]

CT,

Just learn about Sharpe Ratio in your finance class? You're about the 300th person to make this association. And to answer your evening question crowd question, that's a straightforward probability question as long as you're assuming that your Sharpe ratio is constant throughout the entire time. No simulations needed.

[CTKid]

[ QUOTE ]
[ QUOTE ]
After reviewing this thread, its hard to ignore how important both increasing your winrate and decreasing your standard deviation are to anyone who relies on poker for a "steady" income

[/ QUOTE ]

There are no reliable thigns you can do to lower your std without your game deteriorating.
I believe that idea is nonsense. Just concentrate on playing well.

[/ QUOTE ]

That's simply not true. Identifying and eliminating instances that are very high variance and only marginally plus EV will increase your Sharpe Ratio.

[punter11235]

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That's simply not true. Identifying and eliminating instances that are very high variance and only marginally plus EV will increase your Sharpe Ratio.

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What I am saying is that eliminating such instances is both :
a)difficult
b)very bad for your resulsts as such plays usually generates (beside small profit) a lot of action and good image

I think making adjustment to your play to lower std costs too much.
Also instances when you are in "marginally +EV situation with high variance" are very rare and wont help you lower std by much.

[PJ94z]

Man...that's exactly what I was just looking for.. a Sharpe...those things write awesome on CDs

[Grunch]

[ QUOTE ]
[ QUOTE ]
After reviewing this thread, its hard to ignore how important both increasing your winrate and decreasing your standard deviation are to anyone who relies on poker for a "steady" income

[/ QUOTE ]

There are no reliable thigns you can do to lower your std without your game deteriorating.
I believe that idea is nonsense. Just concentrate on playing well.

[/ QUOTE ]

this assumes that std is directly proportional to true winrate? i would expect the relationship to be more of an inverse parabola.

[Josh.]

punter is right

[Josh.]

also, the association between downswings and ratio of winrate and SD is pretty obvious and has been talked about on here a lot. this metric with regard to poker is pretty worthless. comparing poker to a hedge fund is just silly

[Senor Choppy]

This ratio is basically 2 variables already measured by everyone, plus one that has no relevance.

[Grunch]

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punter is right

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I can't see how SD can be linearly correlated to WR; after all, SD is linerar to VPIP, and you can't increase your WR by just adding more & more hands until you get to 100%. But I'm new to MSNL, so I'll go do some forum searching...