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ROI vs ROB
luvBWFC
Member Posts: 763
An interesting point came up in Rich Orfords May bankroll challenge
I was thinking that if you started the month with £100 and finished with £200 then you had a 100% ROI - the investment being the original £100.
Someone then made an interesting point. In the following example there is no rake to make it easier for me to work out.
You start with £100. Totally disregarding br management you sit down in a £100 DYM and win
now you have 200
then you play another £100 DYM and lose
now you have £100 again. Shaken by your loss you drop down to a £20 DYM and win
now you have £120
In the second school of thought your ROI would be calculated with all your spend vs all your return
ie you have shelled out in buys ins £220 and received in prizes £240, so your ROI would be 20/220 or 9.1%
Have I got this right? Before this came to light I would have said the ROI was 20% as you made 20 quid on your initial 100.
I was thinking that if you started the month with £100 and finished with £200 then you had a 100% ROI - the investment being the original £100.
Someone then made an interesting point. In the following example there is no rake to make it easier for me to work out.
You start with £100. Totally disregarding br management you sit down in a £100 DYM and win
now you have 200
then you play another £100 DYM and lose
now you have £100 again. Shaken by your loss you drop down to a £20 DYM and win
now you have £120
In the second school of thought your ROI would be calculated with all your spend vs all your return
ie you have shelled out in buys ins £220 and received in prizes £240, so your ROI would be 20/220 or 9.1%
Have I got this right? Before this came to light I would have said the ROI was 20% as you made 20 quid on your initial 100.
Comments
If however, you had £100 in your account and sat with £20 on an nl20 table and doubled it to £40, you could count that as 100% ROI. Just depends
The ROI% that Mr. Orford and other posters on the May Bankroll Challenge are referring to is clearly the amount that people are staking as their "bankroll" at the begining of May.
The calculation of returns on each individual games are pretty meaningless in this context and merely provide a measure of the success rate of a player. Sites like Sharkscope show ROI and average ROI for these purposes.
It is certainly not true that an ROI of 100% means that you have to win 100% of your games!