? For Math Prof or Another Math Inclined
Math Prof,
Can you or someone give us a walk through of your "Effect of Overhead on Risk of Ruin" formula for us unwashed masses?
Has the formula been improved upon?
Given these varibles:
bank 10g
ror 13.53%
SCORE 59 (EV) hr
variance 5900
expenses $25 an hour
Thank you or anyone else for your time
The formula and article are on the left margin on this page. One may want to check the formula in the article to be sure I copied it correctly.
Formulas for Optimal Bank (given Overhead)
Bank = -2 * ln(r) * F * [o/u]^2
r = exp (-[u/o]
^2 B/[2*F])
where f = fixed expenses (Overhead) in $/HR
u = gross means earning ($/hr)
o = standard deviation
o^2 = Variance ($/hr)
Assuming optimal betting: u = 2 * F
