Risk of Ruin

December 4th, 2008

Yes, you can make money by Card Counting. But you can lose money, too. Actually, you WILL lose money. There is no way to guarantee that you will leave a casino every time with more money than you walked in with. On average, you will have a losing session about 40% of the time. But, if you’re playing properly, you will come out ahead in the long run.

But getting to the long run means not running out of money when you’re on a losing streak. The statistical probability that you will run out of money is called your “Risk of Ruin.” Knowing your risk of ruin helps you assess how risky of a bet spread you are using. Some people are fine with a 50% risk of running out of money, others want only a 1% chance of tapping out. But regardless, you want to know what you’re getting yourself into, and how to then maximize your EV within the risk of ruin you’re willing to operate by.

You can see a video we created on the topic in the Premium Members Video Section.
by Colin Jones