Staker's ROI vs APR

jhill3535 · August 9th, 2008, 01:02 AM

It seems to me that knowing you APR (annual % rate) is much more important than knowing your ROI.

I guess they are both usefull.

If you know you have a staker ROI of 10%, you can look at an investment and ask yourself if you are willing to invest in this person for this length of time to earn 10% and if the answer is yes you invest.

Saying I have a 10% ROI on my staking is really useless for future planning/expectation. I may know that I can expect 10% ROI, but I don't that doesn't take into account the number of times you can turn the original bankroll + compounding interest.

APR seems like it would be a much better measure to predict future expectation. And it is probably also a better measure for historic performance as well.

For instance, my staking ROI for all completed BAPs is sitting at 11.16% right now. That is based on a total staked in those BAPs of $11,792.56. So you can see that I have made $1,316.64 in profit off of those investments.

Tomorrow will be my 5 month anniversary, I started with a average staked out of $2,000. Since then I have increased my staking to around $4,200. This was done partially from profit, partially from my playing bankroll, and partially from depositing when I see a good opportunity that I don't have the proper roll online to take advantage of (staking is going well, and I am looking at moving some more of my money online to take advantage of this fact). So my average amount staked out over this time period is about $3400.

So if you take those numbers, I have still made $1,316.64 in 5 months, which is equivalent to $263.33 per month or $3,159.94 per year. And I am doing that off of an average amount staked out of $3400 which gives me an APR of 92.94% or about 7.745% montly rate of return.

I think that APR is a much better measure of how well you are really doing as a staker.

What do you think?

onebarg · August 9th, 2008, 01:17 AM

Hourly rate > APR > ROI

jhill3535 · August 9th, 2008, 02:43 AM

Quote:

Originally Posted by onebarg

Hourly rate > APR > ROI

How does hourly rate have anything to do with staking.

If you don't have an infinite bankroll, I don't see how spending more time staking that you will make more money. Hourly rate implies that if you put in more hours you make more money which is not necessarily true. If you have all of your expendable money staked out, it doesn't matter how many more hours you work at it, you won't make any more money unless you can improve the quality of the horses you stake.

I guess it also is not necessarily true that if you increase the amount you have staked out that you can expect the same return. You obviously have to invest in weaker horses at some point, but I figure there are only a few people here who if they increased the amount they are staking out would reduce their earn rate.

Now if everyone here increased their amount staked out, I have a feeling that almost everyone's earn rate would suffer.

47IsTheNuts · August 9th, 2008, 03:00 AM

apr is definitely important. monthly rate would be more applicable in this industry i think

WotaWaster · August 9th, 2008, 05:21 AM

Quote:

Originally Posted by jhill3535

How does hourly rate have anything to do with staking.

If you turned $1000 into $2000 over the course of a year and it took you 1000 hours your time would have been more producively spent at another job?

WotaWaster · August 9th, 2008, 05:22 AM

And APR is waaaaaaaaaaaay more important than ROI as a measure of staking success.

jhill3535 · August 9th, 2008, 06:38 AM

Quote:

Originally Posted by WotaWaster

If you turned $1000 into $2000 over the course of a year and it took you 1000 hours your time would have been more producively spent at another job?

I understand the importance of hourly rate in other things. I stake and play poker in time that I wouldn't be doing anything else productive.

I spend like an hour a day at work in the morning going over everything from the night before and updating my spreadsheets. After that everything is pretty much done while multitasking.

The key to opportunity cost, which is what you are alluding to above, is that you actually have to have another opportunity or another job that you could be doing.

7-9diamonddeluxe · August 9th, 2008, 12:01 PM

Wow. Never thought of computing APR for staking. Pretty blown away by the returns. Through June I would have a 97.15% APR if extrapolated for the year.

That really is sick. Considering you're lucky to make 10-12% in traditional avenues.

onebarg · August 9th, 2008, 07:12 PM

Wota farms out large chunks of his staking now because it was taking up a lot of playing time. ChicagoAPA hired someone to do her volume investing because it was taking too much time. My profits went waaaay down after I started a job where I couldn't spend all day browsing the forums. This is more like day trading than traditional stock market investing so hourly rate is extremely important. A lot of us do have other things we could be doing with staking time, for most people here that means playing.

belisarius · August 9th, 2008, 09:19 PM

Quote:

Originally Posted by onebarg

Wota farms out large chunks of his staking now because it was taking up a lot of playing time. ChicagoAPA hired someone to do her volume investing because it was taking too much time. My profits went waaaay down after I started a job where I couldn't spend all day browsing the forums. This is more like day trading than traditional stock market investing so hourly rate is extremely important. A lot of us do have other things we could be doing with staking time, for most people here that means playing.

same here
I had a APR of 1000% for my 1st year here, but I was most of the time unemployed and had a lot of time to browse and find the nuggets
I started a new job with restricted access in January and my APR is waaaaaaaay down.