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JalHampsen: 2%?
Hi. I'm very new to CC, so my question may be very basic. How can counting be profitable with only a 2% edge over the casino? I'm assuming that would mean if you have $50K as a bankroll you'd only make a grand off it. That's a pretty crappy ROI. But, I know I'm missing something here. Can any one be kind enough and help me understand this?
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Don Schlesinger: Re: 2%?
> Hi. I'm very new to CC, so my question may be very
> basic. How can counting be profitable with only a 2%
> edge over the casino?
That's rather high. It's more like 1%. :-)
> I'm assuming that would mean if
> you have $50K as a bankroll you'd only make a grand
> off it.
You're assumption is very wrong. :-)
> That's a pretty crappy ROI. But, I know I'm
> missing something here.
You certainly are.
> Can anyone be kind enough and help me understand this?
Suppose you have a $50K bankroll, and you take half of it to Las Vegas for, say, a week. Suppose you spread 16 to 1 so that your top bet is $800 and your unit is $50. Your average bet is about $150 per hand, and you play 100 hands per hour, five hours per day.
At the end of the week, you have wagered ... more than a half million dollars!! ($525,000, to be exact). Your 1% edge operates on that $525,000, not on your $50,000 bankroll. Get the idea? :-)
Do this four times a year, and you've wagered in excess of $2 million. And, one percent of that is $20,000, which is a 40% annual return on your $50K bank. And, you might never have to invade the $25K that you leave at home, to take the trips, so that, if you're lucky, half the bankroll can be earning interest in the bank, and the $20K return is really on the $25K, which is an 80% return!
Finally, even that $25K is only at risk four weeks a year, so, it, too, can remain in the bank most of the time.
Sound better now? :-)
Don
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JalHampsen: Re: 2%?
Thanks for setting me straight, Don. I knew something didn't add up, so to speak.
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