Blackjack Bankroll Requirements

You have learned how to play blackjack with basic strategy and how to receive casino comps.

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)

Blackjack BankrollNet Win per Hand is the sum of:

  1. Loss from playing blackjack
  2. Amount received from comps = (comps received per hour) / hands per hour / betting unit size

Example:

  • 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:

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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.