If you’re a poker player, you may have heard the term “roe” being thrown around at the table. But what exactly does it mean? In this article, we’ll dive deep into the meaning of roe in poker.
Roe is an acronym for “Return on Equity”. It’s a term used to describe a player’s expected return on their investment. In other words, it’s a measure of how much money a player can expect to win or lose over the long run.
So, how is roe calculated in poker? There are many different factors that can impact a player’s roe, including their skill level, the stakes they’re playing for, and even their opponents’ playing styles.
One of the biggest factors that can impact a player’s roe is variance. Variance refers to the natural ups and downs that come with playing poker. Even if you’re a highly skilled player, you’ll still experience swings in your bankroll due to variance.
To calculate your roe in poker, you’ll need to take into account your expected value (EV) and your standard deviation (SD). Your EV is the amount of money you expect to win or lose on average per hand. Your SD is a measure of how much your results can vary from one session to the next.
Once you have these two numbers, you can use them to calculate your roe using a simple formula:
Roe = (EV / SD) * 100
For example, let’s say that your EV is $1 per hand and your SD is $50 per hour. Using the formula above, your roe would be:
Roe = ($1 / $50) * 100 = 2%
This means that for every dollar you invest in playing poker, you can expect to earn an average return of 2 cents over the long run.
Of course, this is just an example – actual roe figures can vary widely depending on a player’s individual circumstances. Factors like playing style, bankroll management, and table selection can all impact a player’s roe.
So, why is roe important in poker? Well, for one thing, it can help players make better decisions about when to play and what stakes to play for. If you know your roe at a particular stake, you can use that information to determine whether or not the game is worth playing.
Additionally, understanding your roe can help you manage your bankroll more effectively. If you’re playing at a stake with a low roe, for example, you may need to be more conservative with your bankroll management to avoid going broke during inevitable downswings.
In conclusion, roe is an important concept in poker that every serious player should understand. By calculating your expected return on equity and managing your bankroll accordingly, you’ll be able to make better decisions at the table and improve your overall results over time.
