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Where does the 2% house edge in Chartbet come from?


wry

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Posted

I love the idea of Chartbet.  However, I cannot figure out where the 2% house edge comes from.  For example, the house edge in Roulette comes from the green zero space and the associated payouts for the bets.  Yet in Chartbet you control when you cash out.  If the "slope" is calculated in advance then by cashing out "early" aren't you increasing the house edge by playing sub-optimally?

I have a solid grasp of mathematics and gambling.  I can see where the house edge in every other game on Stake comes from, but this one is eluding me.  I'd appreciate it if someone can explain it.  Thanks!

 

I did find this in RGB's question about the random number:  const payout = 1e6 / (randomNumber + 1) * 0.98;  So I expect that's a BIG piece of the puzzle.

Posted

When chartbet crash before 1.00x ?

You can probably count 1.00x too until 1.0x? since it will be hard to cashout quick enough before the game reach 1.01 or so (never tried to cashout directly so i don't really know)

Posted

The way chartbet house edge works is based on crash rate. For every 100 or so bets, you can expect at least 2 of those bets to crash before 1.00x

It would also break down further to a point where in 100 games, 49 would on average pass 2.00x and 49 wouldn't. This is the easiest way of explaining how it works without going deep into the maths, which I personally don't understand all that well currently. The algorithm is similar to bustabit, so perhaps if they have a good explanation of there, it would be the same for here! :) Hope that helps.

  • 2 weeks later...
Posted

I think I have it figured out.  Based on this:  const payout = 1e6 / (randomNumber + 1) * 0.98

I'm thinking it is basically giving you a 98% chance of "winning" every bet.  As your bet "grows" you are basically increasing your bet over some bet increment, set by the game.  Therefore for any bet "increment" including the start of betting, you have a 98% chance of going on and increasing your winnings and a 2% chance of losing. 

My mistake was in thinking the ending payout was set before the game started.  It isn't.  You could basically recreate this by playing dice at PD at a high %, say 98, and just increasing your wager after every "win" and stopping before you lost.

Good Luck everyone!

Posted
14 hours ago, wry said:

I think I have it figured out.  Based on this:  const payout = 1e6 / (randomNumber + 1) * 0.98

I'm thinking it is basically giving you a 98% chance of "winning" every bet.  As your bet "grows" you are basically increasing your bet over some bet increment, set by the game.  Therefore for any bet "increment" including the start of betting, you have a 98% chance of going on and increasing your winnings and a 2% chance of losing. 

My mistake was in thinking the ending payout was set before the game started.  It isn't.  You could basically recreate this by playing dice at PD at a high %, say 98, and just increasing your wager after every "win" and stopping before you lost.

Good Luck everyone!

thank for sharing your experience :) good luck on ur game 

  • Moderator
Posted

If chartbet only crashed at 1 or numbers greater than 1, then there would be a situation where you could bet infinite money forever and the Casino would never get the house edge on bet amount.

For example, setting auto-cash out at 1.0 X you would never lose (you would not win any money also, but that is just a little detail)

So the house edge is implemented when the chart crashes at numbers less than 1, and making an average on a very large numbers of bets, this should happen 2 times every 100 rolls.

 

Posted

Yes Maverick, why I said:  Therefore for any bet "increment" including the start of betting.  You have to have a chance to lose at the start.  I appreciate the long version though.

Posted
On 11/16/2017 at 1:09 AM, wry said:

I think I have it figured out.  Based on this:  const payout = 1e6 / (randomNumber + 1) * 0.98

I'm thinking it is basically giving you a 98% chance of "winning" every bet.  As your bet "grows" you are basically increasing your bet over some bet increment, set by the game.  Therefore for any bet "increment" including the start of betting, you have a 98% chance of going on and increasing your winnings and a 2% chance of losing. 

My mistake was in thinking the ending payout was set before the game started.  It isn't.  You could basically recreate this by playing dice at PD at a high %, say 98, and just increasing your wager after every "win" and stopping before you lost.

Good Luck everyone!

Nice explanation buddy. But 2% house edge is big I think.

  • 2 weeks later...

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