can now get a handle on the expectation for applying
the complete Knock-Out Preferred system. It's important
to realize that this is not an apples-to-apples comparison
with K-O Rookie, K-O Preferred Strategy, etc., whose
derivations of expectation were based on the two-bet
(small and big) jump spread. That's because the complete
K-O Preferred derivation is based on a proportional
betting approach with intermediate betting values
that conform to our benchmark and betting scheme.
of these returns with those in the table on page 90
reveals that there's a slight gain in expectation
(except in the 8-deck game) for implementing a proportional
Decks 1-5 1-10
scheme. The primary benefit from this technique, however,
is related to risk, as the proportional approach conforms
more closely to Kelly wagering. The graduated bet
increases will also provide a little more cover, as
opposed to the drastic variation of the jump spread.
Note also that
this integer spread performs almost identically to
the so-called "full-fractional" betting
scheme, which is essentially a best "theoretical"
result. The returns for the full-fractional approach
for 1, 2, 6, and 8 decks are 1.53%, 1.14%, .73%, and
.54%, respectively. (These results are based on Monte
Carlo simulations and have an associated error of
roughly .01%. Full-fractional betting is employed
for the comparisons in Appendix 3.)
make sure that tournaments finish within a reasonable
period of time, all tournaments utilize an increasing
blind structure. The blinds remain the same size for
the length of one tournament round. Tournament rounds
might be as short as twenty minutes or as long as
two hours; most medium-sized tournaments use thirty-
to forty minute rounds.
At the end of the round, the blinds increase according
to a prearranged published schedule.