N0 (N-zero) is the tipping point.
What is N0 you ask?
N0 = variance/(edge^2) hands
At less than N0 hands, luck (standard deviation) dominates, at more than N0 hands, skill (edge) dominates, at exactly N0 hands the two are equal.
The term comes from one of the blackjack books, I forget which one. Of course it applies to any gamble, which includes the stock market, and actually it probably originates with stock traders.
http://members.cox.net/vpfree/Bank_NO.htm
--- In vpFREE@yahoogroups.com, "Frank" <frank@...> wrote:
>
> For an analysis I'm currently doing I need a solid definition of Short term vs Long term play. Since I'm unfamiliar with these concepts I'm having trouble locking down the meaning either on paper or in my mind.
>
> Short Term = How many hands?
>
> Long Term = How many hands?
>
> What is the popular consensus on the tipping point?
>
> Thanks in advance.
>
> ~FK
>
