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Originally Posted by
James989
Please help me on this :-
Assumed the EV and variance when bet 1 hand in a round is e and v respectively. So the required Bankroll for one hand, BR1= vbk/e, where k is Kelly Ratio and b is bet size. What is required Bankroll(BR5) if I bet 5 hands, each hand same bet size, b in a round ? Should less than 5vbk/e ? Should related to covariance
Please explain with an example if possible.
James
You need to find the total variance for the five simultaneous bets. Variance varies according to rules, but a common value for one hand is 1.32 squared units. And the covariance is generally approximated to be 0.50 between two hands. The general formula would then be: V(n) = 1.32n + .50n(n-1). For five hands, total variance = 1.32(5) + .50(5)(5-1) = 6.60 + 10 = 16.6, assuming one unit bet on each hand.
From here, use your formula above, plugging in bet size, Kelly fraction, and e.v. to get required bankroll.
Don
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