Variance, according to Wikipedia is: In probability theory and statistics, the variance of a random variable or distribution is your expected, or mean, significance of this square of the deviation of that factor from its expected value or mean.
I understand most people are likely saying,”WHAT?” Or”Come again?” But I will explain why you want to know this technical jargon, and its particular importance at the poker tables domino99 .
Variance: In poker variance could be your distribution of your results over a certain time frame — sessions, hours, weeks, hands, or years. Variance will even reveal your swingsboth good and bad. The less of an edge you might have, the greater the variance: The higher the advantage the closer the results will be to your own average. By taking the extreme high and low markers you will receive your variance.
The most basic instance of variance is that the coin flip: In case you were to flip a coin 20 times the chances say you can get 10 heads and 10 tails. However, this is actually the average on a large sample size, within the duration of almost any 20 flips you might get any number of results: The actual odds of having precisely 10 heads and 10 tails is just 17.6%! However, it’s possible to own 20 heads or 20 tails in a row!
Standard Deviation: Standard deviation can be a means to measure the chance of potential effects based on certain data. Standard deviation measures how widespread that your results might be considering everything your ordinary results are.
Suppose you play with $.50/$1 NLHE: If you were to chart your win-rate over 10 internet poker sessions of 300 hands –where you’ve won a total of 330 — in the best to worst your own wins and losses will be all over the place, actually your variance will be 300 (if a very low score wouldbe -$100 and also a top mark of $200). Based on your results, on the span of 10 sessions you could win up to $200 or lose as much as $100. Demonstrably, 10 sessions isn’t a large sample size, however, assume each bar of the chart represented 100 sessions. Now suppose you wish to know your chances of maintaining your $11/100 win-rate using a 95% accuracy.
With such amounts your win rate may fluctuate between $15/100 and $8/100 over any 100 sessions, but over 1000 sessions are going to be between $10 and $12/100, and also over 5,000 sessions will be between $10.50 and $11.50/100.
Another element that will play a crucial part in your variance is how easily you eliminate control of one’s emotions: In the poker world that this is referred to as’TILT’. Players that are more likely to tilt easily will usually have higher variance than players who are able to maintain their emotions in check, and allow the bad beats slide off their own back.
It’s OK to tilt — however self controlled it happens to everybody — that the key is to realize you are on tilt and snap out of it, or quit the game till you calm down. It doesn’t take much for an online poker player to continue tilt, and quickly find himself together with half his bankroll on the table!
This is why many players will give up some more compact advantages play in a less insecure game that offers less profit, as a way to cut down on their own variance. For more about which kinds of games, fashions, and also other things play into variance carry onto Part 3 of this set.