to Wizzard a question about House Edge and element of risk

Dear Mike (Wizzard)

IF a game has House Edge of 2.5% and element of Risk of 0.50%
how much would I expect to lose for each 1000 wagered ? would it be $ 25 ?
What if the Diff between house edge and element of risk ?

Also in the game of Ultimate Texas Hold Em
how would you express bb/100 if you wagered ante 10 bucks blind 10 bucks
3000 hands for plus 300 bucks
How would you figured out what your expected standard deviation would be for
the Next 3000 hands ? Say with a confidence level of 95%

Thanks In Advance
Gary

Wizard typically defines house edge in relation to the listed table minimum. Element of risk is in relation to the total amount wagered.

The distinction is most relevant in games with the ante + play structure or similar.

So in your example, if the $1000 includes all the money you've risked, your expected loss is $5.

If you mean you're putting down $1000 on the ante in Caribbean stud (for example) and then might put more for the play bet, you'd use house edge for an expected loss of $25.

ok so
is i went 10 ante 10 blind and the combine of all the times I raise 4x 2x 1x is an average of of 18
it would then be
38 x 1000 = 38000 wagered and an expected loss of 38000 dollars times 1/2 of 1% = which about be about 19 dollars.
is my figuring correct ?
of course this assumes you are playing a sound and optimal or Very Near Optimal strategy.

IF all of the above is correct ? Then this would be one of the very lowest if not THE lowest house edge game in the casino ?

Quote: gary55

ok so
is i went 10 ante 10 blind and the combine of all the times I raise 4x 2x 1x is an average of of 18
it would then be
38 x 1000 = 38000 wagered and an expected loss of 38000 dollars times 1/2 of 1% = which about be about 19 dollars.
is my figuring correct ?
of course this assumes you are playing a sound and optimal or Very Near Optimal strategy.

IF all of the above is correct ? Then this would be one of the very lowest if not THE lowest house edge game in the casino ?

It is very low . The casino people are used to only looking at EV per ante, to keep it simple, on all games. I really think it can go under their radar. If there is anything that mediates that edge for you, a player can be really playing close to zero HE.

As you play the game, though, you realize that 90% of the players play it so badly that it has to be a huge money-maker for the house anyway. Raising 3X instead of 4X when you are supposed to has been figured to make the EoR HE increase to around 10%, IIRC from other threads.

I really like this game with its low HE and high variance, but right now no one near me offers it *sigh*

Quote: gary55

ok so
is i went 10 ante 10 blind and the combine of all the times I raise 4x 2x 1x is an average of of 18
it would then be
38 x 1000 = 38000 wagered and an expected loss of 38000 dollars times 1/2 of 1% = which about be about 19 dollars.
is my figuring correct ?

You have the idea correct, but 0.5% of 38000 is 190, not 19.

The two numbers are both useful. The house edge is useful for comparing one game to another if they have the same table minimum. For example, if I want to know how much I expect to lose per hand at "$10 minimum roulette" versus "$10 minimum Ultimate Texas Hold'em."

The element of risk is about how much you lose in relation to total action, which especially at many of the newer games can be more than the initial bet.The bigger these "extra" bets are in relation to the original bet, the bigger the discrepancy in element of risk versus house edge.

Wizard also gives the variance for many games, which may be of interest to you.