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That is, I determined optimal stopping points that maximized the players average net win. These stopping points are the loss-exit-point and the win-exit-point: the two goal posts that instruct the player to either stop and collect a loss rebate, or to stop and book a win.
I am going to assume the AP makes all of his wagers on Banker, with a house edge of 1. As usual, to determine the optimal stopping points, I ran a lot of simulations.
For each combination of exit points, I ran ten million 10,, simulated high-limit players. I then averaged together the results for these ten million players to get the average result for a player with the given exit points.
A fast-paced baccarat table runs at a pace of about 70 hands per hour. If an AP is allowed to cash out with no time requirement, then he will quickly amass a fortune.
This is exactly the scenario that Don Johnson exploited in blackjack, in much the same way. Many loss rebate programs have a tiered structure.
The actual percentage rebate the casino pays is based on the total loss the player accrues. In this case, there is always a tier that optimizes the AP's average net-win, and the player will use that tier's loss rebate percentage as the basis for determining his loss-exit-point.
To do a full analysis requires taking all of these factors into consideration. Received his Ph. Eliot has been a Professor of both Mathematics and Computer Science.
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