CVCX: Minimum bet

[MJ1]

How does CVCX determine the minimum bet when the user defines bankroll, bet spread, and kelly factor (assume minimum chip size is set to $1)? I would really like to know. Is there some sort of formula?

I understand that optimal bet = (EV/Var) * bankroll * kelly. This explains how the bets are calculated when there is an advantage but what about when there is no advantage?

Thanks,
MJ

[Freightman]

The Kelly fault as it pertains to blackjack. Your minimum wager is usually the table minimum. You’ll learn to deal with it.

[MJ1]

My question assumes the user does not define the table minimum. I would like to know how CVCX determines it. Perhaps Norm can chime in.

MJ

[G Man]

The Kelly fault as it pertains to blackjack. Your minimum wager is usually the table minimum. You’ll learn to deal with it.

Your minimum bet has nothing to do with table min.

[Norm]

There is no formula, as such, for calculating min bet unless you are only going to make one bet. There is a messy process. I'll be posting something about this in the next few weeks.

[MJ1]

Norm, in the past, you have stated that determining the bet ramp is an 'iterative process'. Can you elaborate what you mean by that? With the exception of calculating the minimum bet, the rest of the bet ramp seems pretty straight forward using the equation optimal bet = (EV/Var) * bankroll * kelly. Where is the iterative process you speak of?

MJ

[DSchles]

The intermediate bets between the min and max are, in fact, determined by the formula you mention. But the min and max are decided by the player, and these constraints are what make finding the optimal ramp an iterative process.

There are several mathematical papers on the subject by a few blackjack luminaries. Search for them. Start with Winston Yamashita.

Don

[Norm]

I wrote something about this for Katarina long ago, but lost it. (EV/Var) * bankroll * kelly is a very good start and is optimal assuming the count never changes. But you have this formula for each TC and then you include the frequencies at each count to come up with the total EV and Var from which RoR and SCORE are calculated. And that's what you want to optimize. Then you have the problems of Wonging, changing number of hands, a fixed spread, betting negative TCs, and avoiding rainbow stacks (simple rounding isn't optimal). The Kelly formula will get you most of the way there -- assuming you can determine the optimal min bet. If you want to set the min bet yourself, that's another story.

[MJ1]

But the min and max are decided by the player, and these constraints are what make finding the optimal ramp an iterative process.

My question assumes the user does not set the Minimum Bet on CVCX. The software derives the minimum bet when you set Kelly, bankroll, and bet spread. I'm curious to know how it does this but the answer isn't so simple I guess.

This question is related to what I was asking you in the other section.

MJ

[Norm]

In CVCX, it takes a few thousand instructions. Partly because of the number of options.

[DSchles]

My question assumes the user does not set the Minimum Bet on CVCX. The software derives the minimum bet when you set Kelly, bankroll, and bet spread. I'm curious to know how it does this but the answer isn't so simple I guess.

This question is related to what I was asking you in the other section.

MJ

Google the papers! They aren't short or simple. Einstein: "Everything should be as simple as possible but not simpler."

Don