Originally Posted by MaxPen View Post
EV is "expected value".

Example....I am playing a game with a calculated return of 104%. This means for every 1000 in action I should profit 40.00. Therefore my EV is +40.00 for a 1000.00 session. When you truly have an edge you make a schedule and play it. Variance is not going to affect you if you really have an edge and play according to your bankroll using Kelly Criterion or something similar.

Professional gamblers measure their results on a daily, weekly, and monthly basis using EV. If I get 25K down at 104% return I earned 1K for the day. If I want to make 100K for the year then I know that I have to set a schedule and maintain it to get in the 2.5 million in action needed.
Exactly! Wonderful explanation of EV, MaxPen. And this is precisely why Alan's concept of stop losses and limits is nonsense to AP's. Our daily goal is not bases on any kind of win or loss, but rather getting in the action that we need to generate a predetermined amount of EV needed.

There is one possibility where losses enter into the picture. I have been reluctant to mention it because I don't want to give ammunition to the stop limit guys that really don't understand the concept. That situation is that I nor most player DON'T carry our entire bankroll with us for security reasons. So there is some sort of 'playing bankroll' or 'trip bankroll' that we have on us. So in the event of losing that portion of BR actually on me, I have two options, to replenish and continue or call it a day. Unless I have lost that 'trip bankroll' very quickly, in the first hour or two of the day, I will usually call it a day.

So in effect that IS a 'loss limit' but it is more a loss limit based on security reasons. If you get robbed once, as I have. you quickly learn you have to find that balance of carrying enough to play, but also only a portion of bankroll.