What Is Standard Deviation in Poker?

Poker is a game of probability and mathematics, and one of the most important concepts in poker is standard deviation. In this article, we will discuss what standard deviation is and how it applies to the game of poker.

What Is Standard Deviation?

Standard deviation is a statistical measure that calculates the amount of variation or dispersion from the average or mean value. In simpler terms, it tells us how much a set of numbers deviates from the average value.

In poker, standard deviation can be used to measure the variance in your winnings over a certain period. For example, if you have a winning session today and a losing session tomorrow, your standard deviation will be higher than if you had two winning sessions that were very close in value.

How Is Standard Deviation Calculated?

The formula for calculating standard deviation is as follows:

σ = √∑(x-μ)²/N

Where:

σ = Standard Deviation
∑ = Summation
x = Value
μ = Mean
N = Number of values

This formula may look complicated, but it can be simplified into three main steps:

1. Calculate the mean value of all your winnings over a certain period. 2.

Calculate the difference between each individual win/loss and the mean value. 3. Square each difference, add them together, divide by the number of values, and then take the square root.

PRO TIP:Standard Deviation (SD), also known as volatility, is a measure of how much variance a player can expect in their results in a given session or period of time. A high SD means that players will experience large wins and losses, while a low SD means that players will experience much smaller wins and losses. Knowing the SD of the game you are playing can help you to manage your bankroll more effectively.

This will give you your standard deviation for that period.

Why Is Standard Deviation Important in Poker?

Standard deviation is important in poker because it helps us understand the variance in our winnings over time. A player with high standard deviation will experience more ups and downs than a player with low standard deviation.

For example, let’s say two players have played 1000 hands each at $1/$2 no limit hold’em. Player A has won $1000 over those 1000 hands, while Player B has also won $1000 over those same 1000 hands. However, Player A has a standard deviation of $500, while Player B has a standard deviation of only $200.

This means that Player A has experienced more variance in their winnings than Player B. They may have had some big wins and some big losses, while Player B may have had more consistent wins and losses.

The Relationship Between Standard Deviation and Bankroll Management

Standard deviation is also important in bankroll management. A player with high standard deviation will need a larger bankroll than a player with low standard deviation to withstand the ups and downs of the game.

For example, let’s say two players are playing $1/$2 no limit hold’em with a bankroll of $2000 each. Player A has a standard deviation of $500, while Player B has a standard deviation of $100.

Player A will need to have a larger bankroll than Player B to withstand the variance in their winnings. If they experience several losing sessions in a row, they could easily go broke if their bankroll is not large enough to handle the swings.

Conclusion

In conclusion, standard deviation is an important concept in poker that helps us understand the variance in our winnings over time. It tells us how much we can expect our results to deviate from the mean value. Understanding standard deviation can help us make better decisions when it comes to bankroll management and overall strategy in the game of poker.