You may have noticed that the online slot results are not very consistent. You may win hundreds of dollars in one session and then lose the same amount the next time in less than an hour. Philippine online slots offer wild results compared to blackjack or baccarat. These games allow you to win almost half the time on a fairly consistent basis.
Online slots have high volatility and high variance compared to other casino games. But what exactly do these terms mean and how do they apply to online slots? Read on, as I’ll cover more about volatility and variance and how they affect your chances of winning.
What is variance?
Variance is a measure of the distribution of long-term outcomes. In short, it measures the degree to which an outcome differs from the statistical mean. Variance should not be confused with standard deviation, which is a square root of variance that more closely measures the average distance of an outcome. Rather, it measures the likelihood of variation in the outcome, rather than providing a strong number like standard variation.
What is volatility?
Volatility is very similar to variance, as it measures the distribution of outcomes. The main difference, however, is that it is bounded by a specific time. Measuring the variance of weekly car sales within a month refers to volatility. Variance, on the other hand, does not require the results to be constrained to a single month. Volatility is a good way to measure short-term variation in a set of statistics. It can help you figure out what kind of risk you are taking in the short term.
How do variance and volatility affect online slot machine results?
Compared to other casino games, Pnxbet Philippines online casino slots have high variance and volatility. Their prizes vary widely, which means they don’t pay out as consistently as most games. Here is a simple pay table to explain.
- 3 Lamborghinis = 10,000 coins
- 3 Ferrari = 2,500 coins
- 3 Audi = 500 coins
- 3 Mercedes = 250 coins
- 3 Hyundai = 50 coins
- 3 Minivan = 25 coins
- 3 Rusty pickup truck = 5 coins
You can see that this payout table has both large and small expenses. Given that the game offers 10,000 coins worth of prizes, it must make up for these wins by paying less frequently. Compare this with an equal amount roulette, for example red/black. You get a 1:1 payout on red/black and have a 48.65% chance of winning (on European roulette).
Volatility comes into play when considering that you never know how a single slot chance session will play out. Depending on the game, you could win a huge six-figure prize. You could also lose $1,000 in a matter of hours. This unpredictability excites some gamblers. This is a big reason why they continue to spin the reels and hope to win the jackpot.
In the long run, there is also a risk in considering the variance factor of online slots. Although they are programmed to offer a certain return to player (RTP), they can still offer widely varying results from player to player. Some slots may take up to millions of spins to reach their given RTP. even over long periods of time, they can be very unpredictable.
This high variance and volatility makes it difficult to manage your money with online slots. While you should still have a strategy in place, your money management plan can still get off track very quickly. In order to play online slots, you must be prepared to deal with this unpredictability. However, as long as you are comfortable with it, then playing these games should be fun.
High and low time slot variance and volatility
I just discussed how online slots have more variability and volatility than the average casino game. But within these categories, there are also differences between each online slot machine. Some slots have less variance in their design, while others are extremely unpredictable. It pays to know how to spot the high and low differences so you can choose the type of slot that’s right for you.
Some games have volatility ratings in their pay tables. For example, Pragmatic Play slots have ratings ranging from 1 to 5 lightning bolts, with 5 volts indicating the highest volatility. I have never actually seen an online slot machine with a variance rating. However, a volatility rating can give you an indication of the variance. Unfortunately, not all online slots offer these useful tools. Instead, you have to look at various factors to predict variance and volatility. The following are the key areas you want to focus on.
- Jackpot size – larger jackpots indicate higher volatility/variance
- Number of bonus features – more bonus means higher volatility/variance
- Number of small payouts – more small prizes indicate lower volatility/variance
There is no guarantee that volatility and variance can be calculated by judging these factors alone. However, they do at least provide you with some way to determine which slots are less predictable than others. Again, variance and volatility are not necessarily interchangeable terms. The former indicates the distribution of results over time, while the latter measures results over a specific time span.
However, given the imprecise ratings of online slots, you cannot clearly measure these factors on a per-game basis. Assuming a slot even offers a volatility rating, then you basically have to use it to indicate variance as well.
Will knowing these terms help you win at online slots?
Understanding the volatility and variance of Pnxbet Philippines online casino slots will help you choose the game that best suits your money management plan. If you have a small amount of money and want it to last, then you should choose games with low volatility and variance.
You may not want to toy with games that have high variance and volatility. The extreme unpredictability increases your chances of losing your money quickly. However, there are some aspects of high volatility slots that are attractive. You may like games that offer large progressive bonuses and many bonus features. In this case, you must also weigh how the unpredictability of the game will affect your money.
You can get lucky and win big with erratic games. However, it is important to realize that the risk you are taking increases as well. In any case, understanding variance and volatility will not increase your chances of becoming a long-term online slot winner. RTP, which I will discuss shortly, is a better measure of this.
That said, knowing these terms will not necessarily improve your chances of winning. However, they are good concepts when it comes to weighing money management against your desire to play with progressive jackpots and bonuses.
Variance and volatility are often used interchangeably in Pnxbet Philippines online casinos and in physical casinos. However, they differ in the way they are used. Variance measures the distance in long-term outcomes without any set time parameters. Basically, it is a measure of change over time. Volatility also measures the distance in the results. However, it is measured for a time limit, such as a week or a month. Both of these concepts are useful in the online slot world.