|
|
 Originally Posted by piratepeaty
Originally Posted by johnny_fish
Originally Posted by salsa4ever
I will not categorically say that your play is wrong, only that I would not make it because it is a huge increase in variance for debatable value.
It's a cash game. Variance is not an issue.
Of course, it is a issue (well, to some). Many people don't like playing a high variance style. Many people have a different loss threshold and would prefer a more conservative style. It's also very easy to turn from a high variance style, to plain chip spewing.
CAPM Model: basic tenet of finance is that if I'm going to be taking risk (increasing my variance) then I want some kind of return.
Remember I am not risk neutral. I'm risk tolerant, but I am not indifferent between a high variance outcome and a low variance outcome IF THE EV IS THE SAME OR VERY CLOSE TO THE SAME. I accept variance AS A NECCESSARY TRADE OFF for making some +EV plays, not because it's not an issue.
|
Reply With Quote