Risk Aversion

[learning to count]

Could someone please discuss/explain in english the theory behind Risk Aversion. I am starting that section in BJAII. In english or some tips to understand this would be helpful as I study this. Thanks. Risk Aversion page 311-316, 328-329. BJAII. Thanks! LTC

 

[Rob McGarvey]

Simply put, you avoid risky plays (ie double your bet for pennies) until they are worth taking the risk for. The EXACT indice # is say +3. At that point after playing 1,000,000,000,000,000,000 hands you will be ahead by five freakin cents. By wating until the TC is +4, you will be ahead by a full dollar! grin It is also easier to remember index #'s if they are all +2 +4 +6 +8 or -2 -4 etc RA works the other way around on the neggy side. -3 you go RA to -4, but with small bets as the Mayor suggests, min bet out, just keep couting and watchin those flashy waitresses shakin it.

SHAKE YO ASS
WATCH YO CARDS
DANGER!!

(at home pounding casinos, sorry, got carried away!)

 

[zengrifter]

I have been asking for a simple-quantified 'universal RA adjustment' - 6-10 i#s shift to RA - rule of thumb (ie, 10v10 increase index by 70%, etc.) - perhaps someone here will take a stab at it, they are certainly easy enough to safely guess at it. zg

 

[zengrifter]

Re: Risk Aversion DRUGGED

"...just keep couting and watchin those flashy waitresses shakin it.
SHAKE YO ASS
WATCH YO CARDS
DANGER!!
(at home pounding casinos, sorry, got carried away!) "
---------------------------

See LTC, gambling IS A DRUG! zg

 

[Rob McGarvey]

Damn Straight!

I'm so high...in fact, I'm $350US higher than I was when I wrote that first bling bling! Don't take much to make me happy, so you may think I'm overdosin', but I come from the factory like this.

Risk Aversion, eCasino Subversion
Takin the Cake, Right Out the Gate
Play by the Rules, Dis off them Fools
Put it all Together, No one does it Better
Pump and McGrind, Time after Time
You and me, and my Bobby Mac Gee

(Higher than Janice Joplin, without gettin' dead)

"I stand right next to a mountain".....na, I'll leave that til tomorrow. I can play all of those tunes on my Strat with my teeth! ;>

 

[learning to count]

Re: Risk Aversion DRUGGED

Well I will agree he is a jovial fellow and he is a canuk so I guess I will excuse his eccentricities. Your right about the addiction part...degenerite gamblers all of us.

 

[V-man]

My understanding of RA is like this:
The traditional way of caculating indices are based on EV alone. Play like 10 vs dealer's 10, if you double down when TC is +4 or more, you stand a better EV but at the same time, your risk is larger. If you can play a trillion hands throughout your entire life than in the long, very long long run, only EV is concerned, but no one will play that many hands, hence EV should not be the only basis, obviously risk must be accounted for. RA indices account for EV and risk, just like the Sharp ratio. Myself, I like the RA indices, even though playing with RA reduces my EV, but my SD is also smaller.

 

[zengrifter]

Re: Risk Aversion ONLY 10...

... or so iindex#s need to be adjusted - 1 index (10v10) garners over 1/2 of the available RA-adjusted gain. So, someone please QUANTIFY THE PRIMARY index-adjustments for RA, please. zg