How big of a bankroll do you need to take advantage of these strategies?
The term for this is Risk of Ruin. Risk of Ruin is the probability that you will lose your entire bankroll.
To calculate your needed bankroll size you need the following information:
- Net Win per Hand
- Standard Deviation per Hand
- Risk of Ruin desired (percent)
Net Win per Hand is the sum of:
- Loss from playing blackjack
- Amount received from comps = (comps received per hour) / hands per hour / betting unit size
- 2D H17 DAS game loss = -0.0046 units (decimal form of expected value %)
- Comps received = $2 / 53 hands per hour / $5 = .0075 units
- Net win per hand = -.0046 + .0075 = .0029
You need to follow my second rule of blackjack money management for these bankroll requirements to work.
Every time you receive a comp you need to add to your bankroll the cash value of the comp to replenish your bankroll. Remember you would have spent this money if you didn’t receive comps.
Standard Deviation per Hand is approximately 1.1418:
- In the post on bankroll probability fluctuation you learned that standard deviation per hand is approximately 1.1418.
My next post will finish the calculation for risk of ruin and give you an idea of the blackjack bankroll size you will need to use these comp strategies.