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Value Betting

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By:
aye robot
When: 09 Feb 11 17:28
Edge is an expression of you return as a percentage of your risk - if you take an individual individual bet on a roulette wheel the house' risk is much higher than the player's. Work through the example yourself if you don't see it at first.

However - if there is more than one bet on the table then the house's risk is reduced. If you wanted to calculate the house' edge on a particular set of bets all of which were struck on the same spin you'd get a different figure.

Imagine if there was one chip on every number - the house would now have no overall risk because whatever happens all the losses would pay out the winner - unless 0 won in which case the house collects everything. Effectively the casino would be laying a 100% book on an incomplete market, it would have a potential return with no risk, so it's edge on this set of bets would be infinite.
By:
Sandown
When: 09 Feb 11 17:58
The Management


You are wasting energy swatting this fly (zipper). He has chosen a forum name which suggests he knows what lies behindthe forum name and which may be very apt judging by the posts, becuase most zippers can be found on mens trousers concealing a p***k
By:
loserschaselosers
When: 09 Feb 11 19:02
aye robot ~ i applaud you. you are the most helpful person on this forum.
By:
FINE AS FROG HAIR
When: 09 Feb 11 19:12
He can afford to be, the money he is making from the existence of BF.
By:
FINE AS FROG HAIR
When: 09 Feb 11 19:15
You sound like Ali Baba Mgt.
By:
aye robot
When: 09 Feb 11 19:31
I think you're confusing Ali Baba, The Management and Jesus FAFH. Probably the only time that's ever happened.
By:
FINE AS FROG HAIR
When: 09 Feb 11 19:50
Geez maybe I am.
Which is Mgt ?
By:
FINE AS FROG HAIR
When: 09 Feb 11 20:42
I think Ali Baba had a band of 40 thieves.
Relevant ?
By:
FINE AS FROG HAIR
When: 09 Feb 11 20:52
I don't know.
Should have been if he wasn't.
Ask your kids ( I have none to ask ).
By:
FINE AS FROG HAIR
When: 09 Feb 11 21:01
I know you were messing.
Didn't know the last fact though.
Pretty obvious I suppose.
By:
FINE AS FROG HAIR
When: 09 Feb 11 21:03
Btw does JC stand for Julie Christie ?
By:
FINE AS FROG HAIR
When: 09 Feb 11 21:32
We agree on something at last.
Took a while but the end result is good.
By:
Trevh
When: 10 Feb 11 01:59
Thanks for the reply AyeR, but as much as I understand the calculations it still seems odd in the real world.

When you think about it from the house' perspective though, they had to put 35 stakes at risk 37 times to get their profit of 1 stake, that's a total exposure of 1295 stakes. If the house wanted to use kelly to calculate their optimal liability the figure they used for edge would be just 1/1295, or 0.0007%.

As far as I can see, for your calculation to work you have to deny logic and assume that the house could lose every spin (37x35 stakes -  1295) to one punter each spin (otherwise the house would redeem stakes on other numbers each spin) which would be impossible in the real world.

If many punters were involved it's also possible that every number could be covered with one stake, giving the house an edge of 2.7%.
By:
TheSnapper
When: 10 Feb 11 08:46
award-winning stuff. thanks for the explanation of backers edge and layers edge, aye, investor, sandown.
By:
aye robot
When: 10 Feb 11 11:05
Trevh, The house COULD lose every spin, that's the point. It's not very likely, but it's possible just the same as it's possible for 1.01s to get turned over. 

You're right when you say the house edge is increased when more than one player plays, I covered this already yesterday at 17:28 - but to save you the scrolling here it is again:

However - if there is more than one bet on the table then the house's risk is reduced. If you wanted to calculate the house' edge on a particular set of bets all of which were struck on the same spin you'd get a different figure.

Imagine if there was one chip on every number - the house would now have no overall risk because whatever happens all the losses would pay out the winner - unless 0 won in which case the house collects everything. Effectively the casino would be laying a 100% book on an incomplete market, it would have a potential return with no risk, so it's edge on this set of bets would be infinite
.
By:
aye robot
When: 10 Feb 11 11:14
Whilst we're on roulette, let's look at how many times you would have to spin the roulette wheel before it becomes very likely that you'll hit a zero.

Since the chance of hitting zero is 1/37 many people would think that after 37 spins it's pretty darned certain - but guess what - many people are wrong.

It's interesting because it's a nice example of how you work out the probability of an event by calculating the probability of the converse (the same event NOT happening).

On any given spin the chances of hitting zero are 1/37.
Therefore the chances of NOT hitting zero are 36/37.
After 37 spins your chances of NOT having hit zero are (36/37)^37 
That works out as 0.36 ish.
From that we can infer that the probability that you will hit zero are 0.74, which (for reasons that I don't really understand) many people prefer to express as 74%. 
So not quite the certainty that many people think.

In gambling you quite often work things out using this kind of methodology.
By:
zipper
When: 10 Feb 11 12:56
Whats all this about 8 /11 split TM ?
By:
zipper
When: 10 Feb 11 15:33
This  is to The Frog,  Hi  follow punter , you have started  loads of post  re value. and me zip , has always said  there aint no value any race  unless  you  have  got the winner   Take this  4.50  Stanley Rigby , about  odds on  zip will take  any odds   and zip will lay  the rest  any odds  thats  the   value   its called  Gambling    fingers  crossed.. when  your  wrong pay with a smile ... its only a bit of fun
By:
Avocado
When: 10 Feb 11 15:38
fvck off zipper
By:
zipper
When: 10 Feb 11 15:41
Avocado  .. get a life   . if thats all you got to say
By:
top2rated
When: 10 Feb 11 15:41
zipper

The Management just sent me a text to say that he's nipped outside for a ****.
By:
Avocado
When: 10 Feb 11 15:43
sorry zippy
By:
zipper
When: 10 Feb 11 15:46
Avocado  if you had a brain  in your head  you should have  hold  back  with your comments  till   my tip got beat.. dont hold you  breath   MUG
By:
zipper
When: 10 Feb 11 16:12
Heres one for you  statiticians..  This Stanley Rigby  4.50  Stanley is on a four break .. how many horse have won  four  on the  bounce   on the A/W ???.
By:
zipper
When: 10 Feb 11 16:19
Toptwo , you gave zip a smile  no a laugh   re  TM  nipped out for a **** 
heres my advice   **** ,  booze ,. women   cards , gambling  .. pets  enjoy em all  ,, cause you only live once ,. this is not a rerun
By:
argosy
When: 10 Feb 11 16:30
http://www.professionalgambler.com/debunking.html

completely destroys the idea that Kelly can win you more as you will do your tank with bad money management
By:
FINE AS FROG HAIR
When: 10 Feb 11 16:37
Err isn't Kelly all about good money mgt ?
By:
Lori
When: 10 Feb 11 16:44
That article has been posted on here before and is written by an idiot.
By:
Lori
When: 10 Feb 11 16:47
The guy who wrote it has the mathematical ability of a nine year old - a particularly stupid nine year old, but a nine year old nonetheless.
By:
zipper
When: 10 Feb 11 16:48
Frog , this Kelly  nonsence   4.50  about 190 k  bet,  ok  it will go up  two   about  600k  why cause  there  gamblers   how much of that   190k   is yours .. honest answers only
By:
zipper
When: 10 Feb 11 16:52
zip  on big time  stanley
By:
zipper
When: 10 Feb 11 16:57
Stanley  Rigby  , Game Over  for zip  .. taking the wife and the  nurse  out  to   zips   eating place  .. the drinks are on me .
By:
argosy
When: 10 Feb 11 17:09
the pg hypothesis makes a lot of sense to me. Over stake and the losing sequence will wipe you out. Mathematical probability ensures that all gamblers will have a long losing sequence at some stage.
By:
aye robot
When: 10 Feb 11 17:17
I don't wish to get into this too much, but I would just point out that with Kelly - or for that matter any "percentage of bank" approach you can never be wiped out.
By:
zipper
When: 10 Feb 11 17:18
Lori   ,, your  spot on  all this   nonsence about   value , take this  board  3 x 15  - minus  your socks    add   5 /201  your under pants  bet 000.2   of   your  bank .....  get on
By:
aye robot
When: 10 Feb 11 17:20
Ok, so now having skimmed the article I'd like to sign up to join the "that article is horse-sh1t" team. He basically just doesn't understand the Kelly criterion.
By:
aye robot
When: 10 Feb 11 17:23
Without wishing to go on another "and another thing" rant.....
By:
aye robot
When: 10 Feb 11 17:26
Most of what's said about gambling is just b0llocks, trotted out by people who have no idea what they're talking about. The Kelly criterion ISN'T just more of the same, it's the subject of a proper mathematical proof. Than means that if you can dis-prove it that's a real mathematical achievement, you should be looking for a professorship in a university, or a research fellowship at the very least.
I'm not saying that this can't be done, just that if your mate from down the pub "reckons" that Kelly is wrong, you should take that with a little pinch of salt. Even if he is a "professional gambler."
By:
zipper
When: 10 Feb 11 17:36
Hi  you guys    i know  your going  to hate me  but  this is all about    VALUE   4.50  Stanley  zip  said   Stanley  was  the value  it won   on the bridle    zip laid the other  4   . value  v opinions  you tell me
By:
zipper
When: 10 Feb 11 17:40
Not many  value  MEN  will  post on this thread .. if they do  and there not talking  bullshit  zip will answer ,.
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