Originally Posted by naruto_miu
I mean look at it like this, if u sit down with $100 at a .25/50cent level, u can make your money into $500 if not more, but how long do you have to stay there, if your there for about 5 hours, then $100 per hour is what your making, but in a tourney, lets say the buyin is about $20 and first place is about 8k, you'll be there for about 8hours, but in the end if u win, u'll have made 8k, meaning that your time is worth about 1k, you choose which one sounds better
I'm sorry, but that's an awful explanation and a bad example. First of all, if you make a profit of $400 at $.25/$.50 over the course of 5 hours, your winrate is about 80 PtBB/hour at 6-max. This is ridiculously beyond sustainable. The same goes for your tournament example.
Why don't we look at a concrete example?
Let's assume a bankroll of $2000. Our player plays $50 MTTs as well as $.50/$1 NL cash games.
Let's give him a good winrate of 6 PtBB/100 for cash games and 90% ROI for multi-table tournaments. Let's say he sees 100 hands/hour at the cash tables, and his average tournament lasts 2 1/2 hours.
Cash game profit per hour: $12
Tournament profit per hour: $18
My numbers should be fairly close to what a good player can achieve. Even though it looks like a win for tournaments, there are huge drawbacks.
For one thing, the amount of tournaments you can play at the same time is fairly limited. A cash player can 8-table even mid to high stakes. A tournament player can't because there are not enough games going.
Also, multi-table tournaments are incredibly swingy. It will take you ages to come anywhere close to your long-term ROI. You may play 30 tournaments in a row without cashing etc.