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Lazy Sports Betting Tactics
How to beat the bookies in the over-under markets
How to convert between decimal and American odds
How to get an edge in betting
How to test the credibility of a tipster`s record
Kelly criterion method
How to use Kelly Criterion for betting
How Weather Affects Sports Betting
Increase Your Chances of Winning Long Term Betting on Sports
Intermediate and Advanced Sports Betting
Common sportsbetting myths
Advices on Betting Fundamentals
Betting do's and don'ts
Choosing a staking method based on your betting profile
Betting staking plans
Value betting explained
Sports-betting- a game of numbers
Market movement in betting
Types of odds explained
European types of bets explained
American types of bets explained
Martingale Considerations in Sports Betting
In-play betting
Accumulator betting
Mobile betting
A Crash Course in Horse Racing
A Crash Course In Sports Betting
American odds versus decimal odds
Bankroll management
Money management in sportsbetting- odds, edge and variance
Basic bet types explained
Paying for Picks
Betting on winning streaks
Betting psychology- a crash course about aspiring professional bettors
Popular Sports Betting Beliefs
Do you make these 9 sportsbetting mistakes?
Does intuition have a place in sportsbetting?
Exchange betting
Randomness in sportsbetting
Fractional versus decimal odds
Home team advantage analised
How bad at sportsbetting are you?
Reasons to Keep Betting Records
How bookmakers make money
How bookmakers work
How do betting exchanges work
Should You Bet on Multiple Sports or Specialize?
How do free bets work
How does luck influence short term betting
How good are betting tipsters
Sports Betting for Beginners
How loss aversion impacts performance
How many sports to bet on
How Much Should You Bet On a Sporting Event?
Staking-one method to improve your betting
How much you should risk per bet?
How Sports Betting Has Changed Over the Last 20 Years
How To Avoid A Big Sports Betting Loss
The art of multiple betting
The history of lotteries
The value of information in soccer betting
Three careers ideally suited to betting
Tips for Better Sports Betting Results
Types of Online Sports Betting Bonuses
Understanding and managing your risk of ruin
Understanding Horse Racing Bet Types
Understanding Live Betting
Value betting is an essential skill for bettors
Ways to Increase the Percentage of Sports Bets You Win
What are drawdowns and how to manage them
What are the most common mistakes the bettors make
What are the real chances of winning the lottery?
What distinguishes winning from losing betors
What is a handicap soccer betting?
What is the Fibonacci betting system?
What is the Labouchere betting system
What is the Martingale staking system
Why do we gamble? Irrationality and overconfidence
Why patience is an essential trait for any serious bettor
Poisson Distribution: Predict the score in soccer betting
Fixed Staking vs. Variable Staking
Basketball betting: Bet types explained
7 Sure-Fire Baseball Betting Strategies
How Does In-Play Betting Work?
To Parlay, or Not to Parlay?
Wisdom of the Crowds applied to betting
CASINO ARTICLES
A Novice’s Tutorial on Casino Gambling Games
How to Gamble with Dice – Popular Dice Games and Their Variations
How Online Casinos Helped Me Love Roulette Even More
My Top Three Tips for Getting Comps in Casinos
5 blackjack stereotypes
5 Gambling Tricks You Can Only Use Online
5 LITTLE-KNOWN FACTS THAT AFFECT YOUR AVERAGE HOURLY LOSS IN A CASINO
5 REASONS CASINO GAMES ARE SO ENTERTAINING
5 Things All Casino Gambling Fans Are Sick of Hearing
5 Tips to Managing Your Casino Bankroll Effectively
The Five Most Important Tips I Ever Learned on Bankroll Management
5 Rookie Mistakes in Blackjack and How to Avoid Them
7 roulette variations probably you have never heard of
7 THINGS YOU NEVER KNEW ABOUT CASINOS
7 Ways Casino Players Sabotage Their Chances of Success
How to Tell If You’re About to Make a Mistake with Your Next Casino Bet
The 12 Types of People I Meet in Casinos – Analyzing My Fellow Gamblers
10 SURE-FIRE CASINO GAMBLING STRATEGIES THAT WORK
What I Love Most About My Three Favorite Video Poker Games
The Last Guide to Video Poker Tournament Strategies You’ll Ever Need
Baccarat and the Martingale System – Can It Work?
Is There a Gambling System That Never Loses?
Combining the Martingale System with Odds Bets in Craps
Which Bets on Which Casino Games Offer the Best Odds of Doubling Your Money?
What’s Next for Online Gambling?
Using Self-Discipline in the Casino
20 ONLINE GAMBLING TIPS
Going All-In – When to Bet It All in Poker
10 Things I Wish I’d Known About Roulette Before I Started
Who’s the Best Video Poker Player in the World
Are No-Deposit Bonuses at Online Casinos a Waste of Your Time or Worth Going For?
Are Online Casino Bonuses Worth Taking?
BEATING BACCARAT – WINNING SYSTEMS & STRATEGIES
CHOOSING THE RIGHT SLOT MACHINE
EUROPEAN VS. AMERICAN ROULETTE
EVEN MONEY CASINO BETS
Feel Confident When Gambling Online – 8 Tips to Help You Choose a Secure Site
Finding the Best Slots Online
Gambling and Poker Playing: 10 Things to Know
GAMBLING GAMES THAT ARE REALLY WORTH TRYING
HOW TO AVOID GOING BROKE AT THE ROULETTE WHEEL
HOW TO GET YOUR FIRST ONLINE CASINO SIGNUP BONUS
How to make a million playing video poker
How to Spend Your Gambling Winnings
HOW TO SURVIVE A BLIZZARD AT THE CRAPS TABLE
HOW TO WIN AT ROULETTE
How to Win Consistently at Casino Gambling
How to Win Consistently at Craps
How to Win Consistently at Roulette
HOW VOLATILITY WORKS IN CASINO GAMBLING
Is It Possible to Play Roulette as a Career (Or Even as a Part Time Gig)?
Is One Blackjack Game Better Than Another?
MONEY MANAGEMENT STRATEGY FOR YOUR NEXT CASINO TRIP
ONLINE CASINO DISPUTES
SKILL BASED CASINO GAMES: PROS AND CONS
The 5 secret joys of casino gambling
The Benefits of an Online Gambling Environment
The Best Long-Term Strategies for Playing Progressive Jackpot Slots
THE BIGGEST JACKPOTS IN ONLINE GAMBLING
THE EASIEST WAY TO LEARN BLACKJACK STRATEGY
THE HOUSE EDGE
The only roulette strategy you will ever need
The Surprising Secret to Winning at Casino Gambling
Who Takes Care of Your Safety at Online Casinos?
Why Don’t Craps Players Just Use the Right Strategy?
Why I love American roulette
WHY IS THE DON’T PASS BET BETTER THAN THE PASS BET IN CRAPS?
WHY IS THE DON’T PASS BET BETTER THAN THE PASS BET IN CRAPS?
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HOW VOLATILITY WORKS IN CASINO GAMBLING

In financial markets, the word volatility is used as a measure of the variation of the value of an investment. In casino gambling, the word refers to the ups and downs of winning and losing. Because of the way most casino games are designed, it’s possible to be up by a lot one minute and way down the next. These bets are considered volatile.

I read a good analogy once that explained the concept to me really well. Think of an ocean. An ocean sometimes has small waves that barely crest, average-sized waves, and large waves that crash against the shore. Think of volatility as a gauge of how overall choppy the water is over the course of a day.

Before you go thinking that volatility is a bad thing, understand that the mechanics of it are a huge part of the appeal of gambling. This article explains how the concept of volatility works in casino gambling.

Volatility vs. House Edge

Most of the gamblers I know (and most of the gambling articles you’ll read online) focus primarily on the house edge. The house edge is the casino’s profit as expressed as a percentage of a player’s bet. It’s an important number to know, but it has nothing to do with volatility or win frequency.

The Two Sides of Volatility

This concept refers to changes in your bankroll over time.

Volatility has two sides – the player controls one when he chooses the size of his bets. We refer to the practice of controlling this aspect of a game’s volatility as “money management.”

The second part of volatility is the natural swing in results over time. This is by far the more important part of volatility, the point at which the game determines whether your bet is multiplied and returned to you, or lost.

We can identify games by their volatility. A coin-flip, which has two possible results and pays 1:1 to the winner, is a low volatility game, because you have a 50/50 chance of winning and losing each time. Wins aren’t big, but losses aren’t big, either. Single-number bets on roulette are high volatility wagers, because both the potential for losing and the potential for winning are high.

Some Examples of Volatile Games

The trouble with volatility comes when some games (mostly table games) are way more volatile than they appear. The most catastrophic end result is that you may underfund your bankroll and be at risk of busting out way before you intended. Highly volatile games are excellent at wiping out bankrolls.

To explain how some games are more volatile than others, let’s look at a few specific casino contests.

Baccarat

Baccarat is a heads-up competition that’s the closest thing you can bet on to a coin flip in a casino. That’s because both the player and the banker win almost fifty percent of the time. Since the payouts are 1:1 for the player and 0.95:1 for the banker, it’s obvious that this is a low volatile game.

Caribbean Stud Poker

Here’s an example of a game that’s volatile through and through. The fluctuations you’ll find in Caribbean Stud Poker are a sure sign that the game is volatile. Some hands win up to five base bets at a time, and then there’s the highly-volatile $1 progressive side wager. It sounds like an expensive game for the casino, right?

Check the pay schedule. The bottom of the pay schedule is designed to increase the house edge. Also, the game itself is designed to reward occasional big wins despite the fact that the majority of your Caribbean Stud Poker hands are losers.

The game tricks you into thinking it is a low volatile contest, because you make up for those regular losses with random big wins. This is a common theme among highly-volatile casino games.

Blackjack

If you know much about gambling strategy, you may be surprised to see blackjack on this list. After all, the game has one of the lowest house edge figures of any in the casino – just 0.5% when played with perfect strategy. But once again, a low house edge does not mean a game isn’t volatile.

Without using perfect strategy, the dealer holds a five percent edge in terms of win frequency. You can reduce that edge by doubling and splitting appropriately (according to basic strategy), and if you’re playing at a good table, you’ll earn extra payouts for natural blackjack which also reduces that edge.

The problem is, in order to reverse the dealer’s advantage, you have to risk extra chips by doubling down, risk larger losses through splitting, and waiting for those natural blackjacks to produce big payouts. In other words, you’re hoping for big wins to wipe out your multiple losses, which is the definition of volatility.

Strategy for Playing Volatile Games

The first trick to playing well at high-volatility games is to identify them. The easiest way is to find a game that pays large jackpots and other big payouts. Generally, the more variation between the game’s top prize and its bottom prize, the more volatile the game is.

The second trick – manage your bankroll and know what highly volatile games are good for. Don’t think of playing a volatile game as a waste of money – volatility is really just an opportunity for you to earn a huge payday, though it requires a larger bankroll if you’re going to chase that jackpot. Because some games (craps, slots, roulette) allow players to make multiple bets at the same time, you need to adjust your bankroll to suit.

The third trick – remember that volatility works backwards as well. Most volatile games pay out large and infrequent prizes, but others pay regularly in small pieces with occasional big losses. The best example would be the lay bet in craps. Don’t think there is anything wrong with this type of wagering – the only downside is that you’d need a massive bankroll to cover your bad losing streaks. Risking a lot of money to chase small wins doesn’t make sense.

Conclusion

Another way to look at volatility as it applies to gambling is to think of it as the average difference between a gambler’s end result and the game’s house edge. If the difference between the two are small, the game has low volatility. If the difference ranges from being broke to winning massive jackpots, the game has high volatility. Remember – a highly-volatile game does not mean a “bad game,” it just means you should approach it with a different betting philosophy.