rake, how much does it mean?

    • Lindberg789
      Lindberg789
      Bronze
      Joined: 10.04.2009 Posts: 314
      Hey guys.
      I'm playing the ipoker 10+1 sngs atm and was wondering if it would make sense to move to stars for lower rake, even though i would get worse "rakeback" than i do at WH.

      Also another question about table selection, how does different players roi affect your expected roi? I mean how much does a breakeven player matter? and what should the fish.reg ratio be for it to be profitable?

      I play 6-max btw.
  • 2 replies
    • pzhon
      pzhon
      Bronze
      Joined: 17.06.2010 Posts: 1,151
      The way I look at it is that the table average is to lose the rake. If you play a $10+$1 tournament, you pay $11 for $10 in equity. In order to break even, you need to gain $1 in equity somewhere along the way, or 9.1% of a buy-in.

      If you were playing $12+$1 tournaments, you would only need to make back 7.7% of a buy-in. You would get about a 1.4% boost to your ROI. However, the other differences between the games, such as the quality of your opponents, rakeback changes, and the blind structures could easily have a larger effect.

      By the way, I analyzed how much ROI some players earned in each stage of the game. The ultra-tight early players gained a little equity in early levels, but not as much as the serious players who were looser. My 17/10 style (not ideal) early in 9-max tournaments allowed me to make back the rake much faster than the players running 7/5.

      If 6 break-even players fill a $10+$1 6-max tournament, they won't break even on average, they will lose the rake. They will be disappointed by $6 total, or about 55% of a buy-in. This does not mean each will be disappointed by the same 9.1%. Those who are better prepared to handle tougher fields may lose less than those who are used to breaking even in softer fields.

      If the sum of the ROIs of the players is greater than -55%, then players will be disappointed on average, and by dividing by the number of players you can compute the average level of disappointment. Your disappointment might be much greater or much lower than this. For example, if your ROI is a fantastic 20%, this means your opponents are going to be disappointed to face you most of the time, while you bear none of the disappointment you cause.

      If you replace a player with a -24% ROI with a break-even player in a 6-max tournament, this increases the average disappointment of the table by 24/6 = 4%. Your share of that might be closer to 24/5 ~ 5% instead. So, break-even players really do hurt your ROI if they are replacing donors.
    • Lindberg789
      Lindberg789
      Bronze
      Joined: 10.04.2009 Posts: 314
      Hey. :)
      Thanks for a great answer.
      Was hoping you would reply. ;)