Quote:
Originally Posted by rad0324
Im new here and I wanted to know what is considered a "unit". I see people saying they bet 2 units on this game, 3 units on that game. How do you figure out what a unit is?
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I can't speak for anyone else, but if you are talking about my post, a unit is that amount as a percentage times your bank. So, 5 units is your bankroll x 5%, 3 units is your bankroll x 3%. I use the kelly criterion and a risk of ruin % of 1%, which makes the unit size basically equal the expected value. Kelly says you should always multiply your bankroll x expected value x the risk of ruin you are willing to accept, since I use 1% as risk of ruin, the risk of ruin falls away and you are left with expected value. I am oversimplifying the formula to make is easy to explain so please any nitpickers who want to flame me for not having the formula "exactly" right please put your flame in the private zone.
In my humble opinion, your standard bet size should be 1% of your bankroll. More than that and you are overbetting your bank. If the expected value is more than slightly more than 50-50 then you can bet the expected value x your bankroll.