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correction

Posted By: Jim Stutz
Date: Tuesday, 5 October 2010, at 7:48 a.m.

In Response To: "free drop" a clear error (Jim Stutz)

XG Roller+ says that both positions are 47%-53% dogs for the leader, but the second position is a big free drop (0.09 blunder to take) while the first position is a clear take (0.045 error to use the free drop).

I concluded: "The difference is that Blue loses 16% gammons from the second position instead of just 11% gammons from the first position."

I thought about this some more, and now I think the above statement is incorrect. The equity numbers don't add up. There must be some other fundamental differences between the two positions beside just gammon risk. Volatility? I don't know, but there is more going on here than just gammon risk. Anyone know the answer?

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