1) Bet size is given by the equation Ev/var x Current Bankroll.
So, if I have an advantage of 2% during a particular round and I have $5000,I should bet $80 (0.02 / 1.25 x 5000). Assuming 1.25 is the variance of the game. Is this correct?
2) How is the variance of computed?
a) Based on variance of player advantage expressed as a percentage
For example, for simplicity let us take 4 samples. Player advantages are 2%, 1%, -1%, -2%. Then variance of this will be 3.33.
b) Based on variance of player advantage expressed as a fraction
This would be the variance of 0.02, 0.01, -0.01 and 0.02. This would be 0.000333.
3) If a game has 2% advantage off the top and only one round is dealt before shuffle then variance is 0. How does the equation work then?
