Drawdown
The importance of drawdown is extremely large. Do not discount the importance, value or advantage it will allow you to have. As you will lose singular, multiple and numerous wagers in-between your wins, you must have a buy-in large enough to survive the downside you are subject to. And within that buy-in you have your drawdown.
What Is It?
It is the size of your buy-in with the amount of your wagers you can lose before you begin to capitalize on the game. Simply it affords you the chance(s) to apply your wager preferences and strategies to materialize.
How Do You Plan Your Drawdown?
Naturally the larger the better. At least in most cases. But practicable versus reality, is the case for the highest majority of all players. You will need to incorporate your drawdown amount with your M.M.M. Your drawdown is not always your initial buy-in. Although I personally favor one buy-in, and the buy-in as a risk capital, the drawdown is virtually the buy-in, within most all cases. If you favor planning for multiple buy-ins rather than a singular one, then your drawdown will be split as well.
As each of us wager differently, flat betting, progressives, etc., You need to generalize your bet sizes and the amount you are comfortable to lose. Then you need to divide the amount of wagers by your comfort level and you will come up with a drawdown amount. Example. You are comfortable losing $4,500. You wager $150 with one time negative progressions occasionally. You generalize you can lose 12 to 20 wagers before you win a series of wagers you can apply your wins to your M.M.M. for application to a 1/3rd, 1/3rd, 1/3rd, system or something similar. So $150 times 20 equals $3,000 and say 10 negative progressions at $150 each equals an additional $1,500. So, you need a $4,500 drawdown amount. IMO, you should also have a three times wager of an extra amount and in this case I'll give it my preference of $200 wagers if I had a base wager of $150, for another $600 total. Add another $600.
EXAMPLE
Base Wagers: $150.00 X 20 = $3,000.00
Negative Progressions: $150.00 X 10 = $1,500.00
Extra Wagers: $200.00 X 3 = $600.00
A $5,100.00 Drawdown would be a very comfortable amount in the hypothetical wagering scenario of $150.00 by a player that engages in some negative progressions as well.
Control Of Your Game
Do not allow your buy-in, drawdown, etc, to control your game. To a certain extent, your decision making process including your wagering amounts must not be totally controlled by your drawdown size, buy-in balance, etc.
Use your drawdown as a guideline, replace it immediately with your wins and use it if you are less than even money. When you capitalize on your game, apply your every so often cumulative wins to your M.M.M. The rest will work itself out in your advantage, if you are employing a solid M.M.M.
Cumulative Wins
Wins should be maintained sideways from your buy-in/ drawdown amount. As I said, use your sporadic cumulative wins to replace your lost Wagers and begin your other 1/3rd, 1/3rd, set-asides as well. This is Paramount! That is the most important task you must engage in for proper M.M.M., that will give you a solid advantage to maintain both your win profits and your buy-in.
If you question several different financial experts to define risk and draw down, you will get unclear answers. What you will get is various ramblings of incomplete ideas, attempting to describe variables that might contribute to risk, but not what the risk actually is. Very similar to what systematic gambling writers often write about as well as how casinos and the industry present the simplistic nature of each game.
So, IMO you must figure it out for yourself according to your style, desires, experience and your goals. Because it is all individualistic to each of us. However, applying a proper M.M.M., Drawdown, and the rest of it what I describe in this posting is not.
Think. Think hard!
Not Systematic But Opportunistic
Think. Exploiting chances offered by circumstances without reference to statistics or beliefs.
I must expose the ultra importance of extreme advantage a player can give himself if he uses proper drawdown with a reasonable buy-in, in relation to his wager sizes and goals. Gambling for the player is opportunistic. Period. Gambling for the casino is systematic. Period.
Every gambler will face countless singular or numerous series of drawdowns, that will lead themselves to seriously question their strategies and beliefs. Learning to recognize them and deal with them positively, will probably be the hardest task each of us face. And, I must add the largest and most harmful performance each gambler faces is emotional disruption to his decision making process, that he inflicts upon himself.
While it is in your best interest to totally remove the emotion out of wagering, it is almost impossible. This is a widely debated and discussed subject for as long as I can remember. However, let's talk frankly, let's discuss the truth at most every gaming table by most every player.
Textbook psychology will dictate if strictly practiced, a player should become as in different to a win as a loss. However, becoming completely detached requires a level of confidence in a players every single game ability, and nothing else. Extremely difficult for most all players to do. But let's be conscious of it and let's work on it and remember it most of all at the gaming table.
Let me define. The lack of good sense, the foolishness and wishful fake foresight seems to have most every player believing chasing losses is some kind of golden rule of gambling. What am I talking about? Two things. One is repetitive negative progression and the other is, continued wagering to recoup losses. In other words, increasing your wagers until you win is so erroneous, it is catastrophic in most cases, unless you manage it through proper M.M.M., when you are winning.
Negative progression and continued wagering to recoup losses and begin to win, are perfect examples of gamblers fallacies. But they are employed day after day at most every table that exist in casinos. That is why players lose their winnings if they do not strictly adhere to a proper M.M.M. plan with a 1/3rd, 1/3rd, 1/3rd, division for your wins or something very similar to it. Why? Because two things. One, you will give up a greater percentage of wins and buy-in funds to recover previous losses because the drawdowns will destroy your bankroll that could have been employed making you profits. Two, believing that negative progressions and continued wagering to recoup losses will only lead you to ignoring randomness in your evolution of winning and losing. Even for successful gamblers. How can I state the above? Because I have had countless real experiences as well as research data for it.
What it boils down to is, players dramatically increasing their wagers after generating sizable profits during small/smaller series of wagers. The highest amount of all players lost almost all of it again in a considerable small/short amount of time if they did not subscribe to and adhere to a proper M.M.M. with something similar to my 1/3rd, 1/3rd, 1/3rd, division and application of your winnings.
Summation
Be intelligent, understand drawdown, emotional distraction, and opportunistic wagering over systematic beliefs. I will probably look a little bit foolish to say, what happens in winning is partly luck, where cause-and-effect were loosely connected. But it is true. Intelligent players will avoid the temptation of looking at outcomes and assuming they made them happen or knew they were coming. Instead, they will realize how great understanding drawdown, emotional distraction avoidance and opportunistic wagering gave them advantages while religiously capitalizing on the game when the opportunity presented itself.
Reactions based on opportunity. Realize what they are and how to take advantage of them.
I would much rather lose wagers with a positive progression of winnings and expectation; then to win wagers with a negative progression because I was playing repetitive catch up.
The importance of drawdown is extremely large. Do not discount the importance, value or advantage it will allow you to have. As you will lose singular, multiple and numerous wagers in-between your wins, you must have a buy-in large enough to survive the downside you are subject to. And within that buy-in you have your drawdown.
What Is It?
It is the size of your buy-in with the amount of your wagers you can lose before you begin to capitalize on the game. Simply it affords you the chance(s) to apply your wager preferences and strategies to materialize.
How Do You Plan Your Drawdown?
Naturally the larger the better. At least in most cases. But practicable versus reality, is the case for the highest majority of all players. You will need to incorporate your drawdown amount with your M.M.M. Your drawdown is not always your initial buy-in. Although I personally favor one buy-in, and the buy-in as a risk capital, the drawdown is virtually the buy-in, within most all cases. If you favor planning for multiple buy-ins rather than a singular one, then your drawdown will be split as well.
As each of us wager differently, flat betting, progressives, etc., You need to generalize your bet sizes and the amount you are comfortable to lose. Then you need to divide the amount of wagers by your comfort level and you will come up with a drawdown amount. Example. You are comfortable losing $4,500. You wager $150 with one time negative progressions occasionally. You generalize you can lose 12 to 20 wagers before you win a series of wagers you can apply your wins to your M.M.M. for application to a 1/3rd, 1/3rd, 1/3rd, system or something similar. So $150 times 20 equals $3,000 and say 10 negative progressions at $150 each equals an additional $1,500. So, you need a $4,500 drawdown amount. IMO, you should also have a three times wager of an extra amount and in this case I'll give it my preference of $200 wagers if I had a base wager of $150, for another $600 total. Add another $600.
EXAMPLE
Base Wagers: $150.00 X 20 = $3,000.00
Negative Progressions: $150.00 X 10 = $1,500.00
Extra Wagers: $200.00 X 3 = $600.00
A $5,100.00 Drawdown would be a very comfortable amount in the hypothetical wagering scenario of $150.00 by a player that engages in some negative progressions as well.
Control Of Your Game
Do not allow your buy-in, drawdown, etc, to control your game. To a certain extent, your decision making process including your wagering amounts must not be totally controlled by your drawdown size, buy-in balance, etc.
Use your drawdown as a guideline, replace it immediately with your wins and use it if you are less than even money. When you capitalize on your game, apply your every so often cumulative wins to your M.M.M. The rest will work itself out in your advantage, if you are employing a solid M.M.M.
Cumulative Wins
Wins should be maintained sideways from your buy-in/ drawdown amount. As I said, use your sporadic cumulative wins to replace your lost Wagers and begin your other 1/3rd, 1/3rd, set-asides as well. This is Paramount! That is the most important task you must engage in for proper M.M.M., that will give you a solid advantage to maintain both your win profits and your buy-in.
If you question several different financial experts to define risk and draw down, you will get unclear answers. What you will get is various ramblings of incomplete ideas, attempting to describe variables that might contribute to risk, but not what the risk actually is. Very similar to what systematic gambling writers often write about as well as how casinos and the industry present the simplistic nature of each game.
So, IMO you must figure it out for yourself according to your style, desires, experience and your goals. Because it is all individualistic to each of us. However, applying a proper M.M.M., Drawdown, and the rest of it what I describe in this posting is not.
Think. Think hard!
Not Systematic But Opportunistic
Think. Exploiting chances offered by circumstances without reference to statistics or beliefs.
I must expose the ultra importance of extreme advantage a player can give himself if he uses proper drawdown with a reasonable buy-in, in relation to his wager sizes and goals. Gambling for the player is opportunistic. Period. Gambling for the casino is systematic. Period.
Every gambler will face countless singular or numerous series of drawdowns, that will lead themselves to seriously question their strategies and beliefs. Learning to recognize them and deal with them positively, will probably be the hardest task each of us face. And, I must add the largest and most harmful performance each gambler faces is emotional disruption to his decision making process, that he inflicts upon himself.
While it is in your best interest to totally remove the emotion out of wagering, it is almost impossible. This is a widely debated and discussed subject for as long as I can remember. However, let's talk frankly, let's discuss the truth at most every gaming table by most every player.
Textbook psychology will dictate if strictly practiced, a player should become as in different to a win as a loss. However, becoming completely detached requires a level of confidence in a players every single game ability, and nothing else. Extremely difficult for most all players to do. But let's be conscious of it and let's work on it and remember it most of all at the gaming table.
Let me define. The lack of good sense, the foolishness and wishful fake foresight seems to have most every player believing chasing losses is some kind of golden rule of gambling. What am I talking about? Two things. One is repetitive negative progression and the other is, continued wagering to recoup losses. In other words, increasing your wagers until you win is so erroneous, it is catastrophic in most cases, unless you manage it through proper M.M.M., when you are winning.
Negative progression and continued wagering to recoup losses and begin to win, are perfect examples of gamblers fallacies. But they are employed day after day at most every table that exist in casinos. That is why players lose their winnings if they do not strictly adhere to a proper M.M.M. plan with a 1/3rd, 1/3rd, 1/3rd, division for your wins or something very similar to it. Why? Because two things. One, you will give up a greater percentage of wins and buy-in funds to recover previous losses because the drawdowns will destroy your bankroll that could have been employed making you profits. Two, believing that negative progressions and continued wagering to recoup losses will only lead you to ignoring randomness in your evolution of winning and losing. Even for successful gamblers. How can I state the above? Because I have had countless real experiences as well as research data for it.
What it boils down to is, players dramatically increasing their wagers after generating sizable profits during small/smaller series of wagers. The highest amount of all players lost almost all of it again in a considerable small/short amount of time if they did not subscribe to and adhere to a proper M.M.M. with something similar to my 1/3rd, 1/3rd, 1/3rd, division and application of your winnings.
Summation
Be intelligent, understand drawdown, emotional distraction, and opportunistic wagering over systematic beliefs. I will probably look a little bit foolish to say, what happens in winning is partly luck, where cause-and-effect were loosely connected. But it is true. Intelligent players will avoid the temptation of looking at outcomes and assuming they made them happen or knew they were coming. Instead, they will realize how great understanding drawdown, emotional distraction avoidance and opportunistic wagering gave them advantages while religiously capitalizing on the game when the opportunity presented itself.
Reactions based on opportunity. Realize what they are and how to take advantage of them.
I would much rather lose wagers with a positive progression of winnings and expectation; then to win wagers with a negative progression because I was playing repetitive catch up.