ITH Poker Forum

[Polar_Bears]

Dumb question but was is a RoR? I know what ROI is but haven't heard RoR before...

Thanks!

[nsidestrate]

It means "Risk of Ruin." It is a mathematical concept that asks what the chance is that your bankroll goes to zero and you go broke before you win the amount you expect to win in the long run.

Let's imagine you are the best poker player in the world and have figured out a way to beat every game on the planet for 1 bb/100. If you have $10,000 to your name and you played a $10,000 buy-in no limit game, there is a very good chance that you would go broke unless you started out very hot. If you played a $10 buy-in, it would be extremely unlikely that you would ever go broke.

Risk of Ruin defines this risk precisely using math, using your earn rate, your standard deviation and your bankroll.

[Polar_Bears]

Got it thank you!