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Hello Dhays,
I will give you my current understanding of this topic. I invite anyone to please correct me if anything I state is inaccurate.
As I understand it Arnold's system for Hi-Lo Lite uses a conversion to true edge based on half decks remaining. i.e. if the RC = 16 and there are 4 decks remaining then you have a numerator of 16 with a denominator of 8 (4 decks x 2 to represent the half decks remaining) which gives you a true edge value of 2%.
If you didn't use the true edge conversion you would instead use the true count conversion by dividing the RC by the full decks remaining which by way of my example above would be 16/4 = 4. This value represents the true count not the true edge. We assume that when using this system each point of true count is worth approximately 0.5% which in fact correlates, in this case, to the true edge of 2% as shown above. It is just a matter of how you choose to calculate it.
My point here is not to suggest that you didn't already know how to make these conversions but to instead show that it is not accurate to state that calculating the true edge based on the remaining half decks correlates to a 1% change in edge per integer value. It is in fact a direct conversion to true edge that skips having to calculate the true count then convert from the true count to the true edge which is one of the main points for using the Hi-Lo Lite indices as you are able to make all of your play and betting decisions based on one value without having to convert back and forth. This is in addition to the fact that all of the Hi-Lo Lite indices are rounded to whole numbers for easier memorization and recall.
To address the issue of the insurances indices (and several others) having slightly different values I offer the following explanation:
Arnold's index values for Hi-Lo Lite are all true edge values calculated based on the half decks remaining as stated above. For simplicity he rounds several of these indices to whole numbers that are easier to remember while sacrificing very little in the way of playing efficiency. For example the index value of 2 for insurance is in contrast to the value suggested by the I18 where you take insurance at a true count of 3 which is in fact a true edge of 1.5%. Arnold feels it is much easier to remember whole numbers thus reducing possible errors while playing. This rounding to whole numbers sacrifices a very marginal amount in the way of playing efficiency - i.e. taking insurance at a true count of 4 rather than 3. That being said, technically speaking, you would be playing correctly either way.
Just to make one more example I'll address the index value for 16v10. The I18 suggests standing, assuming surrender is not an option, when the true count is 1, true edge of 0.5%, or higher. Arnold rounds this value down to 0 as standing would be more correct at 0 or higher as opposed to a true edge of 1%, true count of 2, or higher were he to round up instead. Again the playing efficiency difference between the I18 and Arnold's true edge indices is very marginal and you would be technically playing correctly either way.
Should you desire to run Arnold's numbers through a simulator and compare them to the I18 you would simply multiply all of the Hi-Lo Lite index values by 2 before inputting them into the simulator. This would convert all of them into a true count format. I hope I answered your questions accurately. Again, please let me know if anything I have stated is incorrect and/or if further elaboration is desired.
Zuul