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Old 05-20-2013, 01:05 AM   #7
Join Date: May 2005
Posts: 817
Re: Simulated risk of ruin in $1500 WSOP events

Originally Posted by curesive View Post
Are these supposed to be the same player with respect to ROI and SD? Looks like the numbers are different for those.
Yes for both these players I used the same overall ROI and finish distributions from the underlying $1500 tournament. The numbers in the output are the ROIs on the money the player invests in himself. They are so different because the player selling 65% only has to put up $330 while the 50% seller has to invest $600 in himself. The standard deviation is affected by the same phenomenon.

I just adjusted each payout $ amount to account for what each player can win for himself. For example the 50% seller gets $390,699 for winning and the 65% seller gets $273,489.

Its easier to compare the sellers' 2 choices using avg profit/ tourney because the ROI # gets skewed as people sell a higher % of action. For example a player freerolling the WSOP for 20% of himself has an infinite ROI even if he is a losing player. But everyone will have a lower average profit the more action they sell.
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