Originally Posted by
Tthree
HILO I18 and Fab4 heads up:
EV $821.22, spread 100 to 1600, RoR 5%, N0 8680
HILO full indices heads up:
EV $929.63, spread 110 to 1760, RoR 5.3% (I had to round the optimal bet from 108 to 110 by tweaking the RoR a hair but he wanted practical error introduced), N0 7796
Now we get a gain from PE of 13.2% along with all the other benefits. The 200 rounds an hour shouldn't make any difference for the percentages but that tiny tweak introduced almost 20% error for what the increase in PE is worth. I hope that answers why you don't include it in the study to determine the value of PE. The rounding could have had the error be as high as 40% and it could have been in either direction. That only becomes relevant if you are looking at a specific situation not the general gain from the PE increase. So basically the gain in PE for practical applications to HILO is 6 to 14%. If you used a much smaller BR the gain would have a much wider range of error since the rounding error is much more significant compared to the bet size.
Bookmarks