Ed Miller writes: "First is the assumption that this bankroll is unreplenishable out to
infinity. This is the money you have, and you will never have a penny more
that you didn't win playing the game."
Just to flesh this out a bit: Say every Friday you add $200 to your gambling bankroll, from your other side jobs. And you play during the weekend, then continue this every week. The safe way to play this is to consider your bankroll as it exists on a moment by moment basis. However, if you know for certain (but could also be probabilistic) that at say 5pm Friday you will always add $200 to your gambling bankroll, you could have played more aggressively the previous weekend. One way to estimate an appropriate level of aggression is to treat the $200 as cashback or rakeback. So, if your EV on the weekend is $20/hour, and you play 20 hours, the $200 due next Friday can be estimated as an additional $10/hour to EV. Variance is unchanged, as long as you know for certain the $200 is coming. Of course, the reverse is also possible, that is you take $200 out every Friday to fund your lifestyle, in which case you can estimate a leak of $10/hour, making your net EV $10/hour.
This topic is actually accounting, whether you use a cash basis of accounting or something else:
Basis of accounting - Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Basis_of_accounting
http://en.wikipedia.org/wiki/Basis_of_accounting
Basis of accounting - Wikipedia, the free encycl... http://en.wikipedia.org/wiki/Basis_of_accounting A basis of accounting can be defined as the time various financial transactions are recorded. The cash basis (EU VAT vocabulary Cash ac...
View on en.wikiped... http://en.wikipedia.org/wiki/Basis_of_accounting
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Posted by: nightoftheiguana2000@yahoo.com
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