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Old 05-12-05, 12:39 PM
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Default Higher limits/lower rake %?

Kurn, I'm curious on how you arrived at this. Is the assumption that the higher the limit, the better the players, and hence the lower the earn rate? If I understand correctly, with each jump up in limits the percentage you are paying in rake goes down. So in theory, if the skill level is the same at 10/20 as it is at 20/40 (which is a big assumption), you should actually be able to win at a higher BB per hour rate. Or am I missing something?
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Old 05-12-05, 04:23 PM
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The higher you go in limits, the better the overall skill level, thus the lower your expectation in bb/time. Sklansky estimates that in the very big games like the $4,000/$8,000 mixed game the best players average less than .25 sb/hr.

This is one reason why many of the better pros (the many you don't hear about) never move up beyond the 60/120 level. At some point, the small increases in expectation don't offset the bigger risk of ruin.

For example, let's take a hypothetical player who has the chops to hold his own at the $1,000/$2,000 level for 0.5 sb/hr, but can crush the 80/160 for 1.25 bb/hr. Now. let's further stipulate that he has a $600,000 bankroll (300 bb at $2,000). What makes more sense, making $500/hr with a very real statistical risk of going broke, or making $200/hr with virtually zero risk of ruin?
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Old 05-12-05, 05:26 PM
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Excellent analysis. Thanks, Kurn.
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