Risk of Ruin (RoR) is the probability of losing your entire bankroll. A lower risk of ruin means your bankroll is better protected against variance and losing streaks.
Mathematically, it's calculated using the formula: RoR = e^(-2 * bankroll * edge / (stdDev^2 * betSize^2))
Bankroll ManagementProper bankroll management is crucial for gambling sustainably. It helps you:
1. Survive losing streaks
2. Reduce emotional decisions
3. Play within your means
4. Extend your playing time
A common rule of thumb is to have at least 100-300 times your average bet size as your total bankroll.
Game Standard DeviationsStandard deviation measures the volatility of a game. Higher standard deviation means more variance in outcomes.
Approximate standard deviations for common casino games:
- Blackjack: 1.15
- Roulette (Single number): 5.8
- Craps (Pass Line): 1.0
- Baccarat (Player): 1.0
House Edge by GameThe house edge represents the casino's mathematical advantage. Typical values:
- Blackjack (basic strategy): 0.5%
- European Roulette: 2.7%
- American Roulette: 5.26%
- Craps (Pass/Come): 1.41%
- Baccarat (Banker): 1.06%
- Baccarat (Player): 1.24%