Quote from: x128 on May 21, 2015, 06:24:55 AM

Quote from: NLNico on May 21, 2015, 05:48:50 AM

Quote from: x128 on May 21, 2015, 05:34:11 AM

Quote from: NLNico on May 21, 2015, 05:29:28 AM

To calculate the max profit you can risk without getting broke ("risk of ruin"), generally the kelly criterion is being used. Truthfully I personally do not know the real details of this complex theory/formula :> But generally "0.5 - 1 times house edge is being used". So if your bankroll is 10 available coins and your house edge is 1%, you can risk 0.05 - 0.1 max profit per bet. If a player is lucky and you have 9 coins left, this should change to 0.045 - 0.09. You can use 0.5x or 1x depending on what you are comfortable with.

Is 10 btc bankroll enough? Well it depends if you think players are fine with a 0.05 - 0.1 max profit (based on 1% edge.)

Well, so I guess I'll need at least 100 BTC to get it started. And how do I figure my house edge out? Thank you.

That is a bit of a strange question TBH Tongue

This should be already in your provably fair calculation.

If you do a coin flip, both sides have 1/2=0.5 chance of winning. This means the casino should just breakeven in the long term. Now a site with 1% edge, the player has: 1/2*0.99 = 0.495 odds to win 2x. A site with 2% edge, the player has: 1/2*0.98 = 0.49 odds to win 2x. Etc. Basically it makes sure the casino makes a profit in the long term. These days in the bitcoin gambling community just a 1% house edge is the standard (which is low compared to traditional casinos.)

So yeh, I think you should probably have 1% house edge but it depends on your game.

Yeah I got it now. So as per my current calculation, the edge is 0%.

1) You have to have a house edge or literally you are gambling every spin with the player. You have no edge to make a profit in the long run. YOU NEED at least 1% edge to survive imo.

2) Look up Kelly bankroll management for how much of a bankroll you want to have depending on what your max win will be.