Joined: Feb '09
Location: Denmark
Age: 52 (M)
Posts: 160
It seems to be concensus that it you go up a level your ROI is expected to fall, but that doesnt mean that you wont make more money. So if you go from $5 SNG with ROI 40% to $10 with ROI 22% (no rakeback here) It's good. Actually it's an improvement of about 10% right (expected 20%->22% is plus 10%). But what does it mean? Do I win less games? For instance in SNG (50%/30%/20%) I have to win a bit more than 1*1st, 1*2nd, 1*3rd to break even in ten games if there are ten seats on the table, right? That must be true for all levels, disregarding what amount I play for. Then if ROI falls how can anayone allow themselves to play at a higher level?
Hope it's not too confusing, and please tell me why my arguments are wrong here
Joined: May '09
Location: Netherlands
Age: 39 (M)
Posts: 78
Ok I hope I get your question:
ROI = Return of Investment or Rate of Return or rate of profit. I prefer to use the last term.
I don't want bore you with mathematics, but the formula is something like: (Final amount - original investment) / original amount. So it is possible that the amount of money you win now is bigger, even if your ROI is dropping. And that's just because a ROI of 10% of 10 dollar = 1 dollar profit AND a ROI of 8% with 20 dollar stakes = 1.6 dollar.
So what does this ROI mean for you? It basically means that you win a smaller percentage (%) of your total games played at higher levels. This has probably to do with your competences and the better players at the higher stake level you are at now.
Did my answer help you? OR do you have more questions (that I might missed)?
Joined: May '08
Location: Germany
Age: 59 (M)
Posts: 6786
If you move up in stakes the average opponent is going to be better. So your roi will drop. But as long as the roi is still in the double figures there is no problem.
Posted by thpe94ad: It seems to be concensus that it you go up a level your ROI is expected to fall, but that doesnt mean that you wont make more money. So if you go from $5 SNG with ROI 40% to $10 with ROI 22% (no rakeback here) It's good. Actually it's an improvement of about 10% right (expected 20%->22% is plus 10%). But what does it mean? Do I win less games? For instance in SNG (50%/30%/20%) I have to win a bit more than 1*1st, 1*2nd, 1*3rd to break even in ten games if there are ten seats on the table, right? That must be true for all levels, disregarding what amount I play for. Then if ROI falls how can anayone allow themselves to play at a higher level?
Hope it's not too confusing, and please tell me why my arguments are wrong here
Whilst theoretically this is true, it actually holds little water.
Supposing I get $50 on a poker site. And go and play one big SNG ( say $40+4 ) and came first winning $200.. Then I have a fanstastic ROI.. But long term that would drop down. Its an artificial figure.
If I play 40 x $1 + 10c and get the same ROI then I am proving a level of consistency thats returning me good money without the risk of going broke...
Therefore a 40% ROI at $5 is infinitely better than 22% ROI at $10 because it proves that consisntently I am making a profit in more of the games I play
Joined: May '09
Location: Netherlands
Age: 39 (M)
Posts: 78
Posted by fcumred:
Posted by thpe94ad: It seems to be concensus that it you go up a level your ROI is expected to fall, but that doesnt mean that you wont make more money. So if you go from $5 SNG with ROI 40% to $10 with ROI 22% (no rakeback here) It's good. Actually it's an improvement of about 10% right (expected 20%->22% is plus 10%). But what does it mean? Do I win less games? For instance in SNG (50%/30%/20%) I have to win a bit more than 1*1st, 1*2nd, 1*3rd to break even in ten games if there are ten seats on the table, right? That must be true for all levels, disregarding what amount I play for. Then if ROI falls how can anayone allow themselves to play at a higher level?
Hope it's not too confusing, and please tell me why my arguments are wrong here
Whilst theoretically this is true, it actually holds little water.
Supposing I get $50 on a poker site. And go and play one big SNG ( say $40+4 ) and came first winning $200.. Then I have a fanstastic ROI.. But long term that would drop down. Its an artificial figure.
If I play 40 x $1 + 10c and get the same ROI then I am proving a level of consistency thats returning me good money without the risk of going broke...
Therefore a 40% ROI at $5 is infinitely better than 22% ROI at $10 because it proves that consisntently I am making a profit in more of the games I play
But that isn't his question is it? We ain't talking about representivity, we were talkin about the meaning of the ROI %. And since it's a percentage it automatically becomes more representative in the long term.
