Discovering the secrets of volatility: what every gambling enthusiast should know

On the surface, gambling games seem very straightforward and do not require much knowledge of effective gameplay that translates into final winnings at VOX casino or other reputable online casinos. In many cases, this is true. However, experienced players know full well that, under the guise of impressive visuals, there are all sorts of algorithms controlling the gameplay, some quite complex, others less so.

Suffice it, for example, to mention the Random Number Generator (also known as RNG, from the term 'Random Number Generator'), which is the basic solution responsible for the results for each round in a game. In addition to this, theoretical aspects such as, for example, RTP (Return to Player, commonly referred to as profitability) and volatility (referred to in English as 'volatility') also come into play. And it is the latter that we will address in some detail today.

What is volatility anyway?

Volatility is a feature of gambling that describes the inverse correlation between the frequency of winnings and their amount. We realise that this definition may not seem very clear, so we will use an easy-to-understand example based on slot machines.

Volatility in slot machines

Volatility in slot machines is one of the most important factors players should consider before playing. In short, volatility is a measure of the risk associated with a particular game, and its translation into practice is as follows:

• High volatility means that wins will be high, but will fall infrequently.
• Low volatility will translate into wins falling frequently, but they will be low.
• Medium volatility, as you can easily guess, averages both.

With that said, this should not be understood in an absolute way here. A low volatility, for example, does not mean that all wins are low on a particular slot machine - what is meant here is that a player can expect regularly falling wins of low value, usually in the range of 0.5x to 1.5x the base stake. Winnings of a higher value can happen, but they will fall correspondingly less frequently.

In short, if you prefer to win frequently but don't care about huge money, choose slots with low volatility. If, on the other hand, you can accept having to spend more in exchange for the chance of really substantial money paid out by the game, choose a title with high volatility.

Volatility in table games

Volatility in table games such as blackjack or roulette may not be as obvious as in slots, but it also plays a significant role. Here, however, it is important to keep a simple fact in mind: if a game can use a strategy based on the player's decisions, this can significantly affect the volatility during gameplay.

In blackjack, for example, volatility is, generally speaking, very low. But if a player adopts an aggressive strategy that aims to get to a score of 21 and win 3 to 2 on every hand, this can significantly increase the variability of the outcome due to the higher probability of overdrawing. Conversely, a more conservative course of action, such as refraining from drawing cards at a moderate score (e.g. 17), can provide more regular wins, albeit at a 1-to-1 ratio.

Similarly, in roulette, betting on single numbers increases the volatility of the game significantly, making this strategy in roulette translate into high volatility. This is also easy to see by checking the amount of potential winnings, which is 35 to 1. So betting on a single number in roulette means playing on high volatility. However, if we follow a more conservative strategy, betting on options such as red/black or even/odd, then we will be betting on low volatility, where wins will be more frequent but of lower value, more specifically at a ratio of 1 to 1.

As you can see, in games such as roulette or blackjack, the volatility depends on the type of bet placed. In slot machines, on the other hand, volatility is only related to the specific game and not to the type of bets we place.

Strategies for high-volatility games

When playing games with high volatility, such as slot machines offering large jackpots or at roulette tables and betting on single numbers, effective balance management becomes a key aspect.

Indeed, it is strongly recommended that players set themselves clear limits on losses possible and winnings in order to protect their funds in the medium term. The use of progressive strategies, such as Martingale or Fibonacci, in games with high volatility can be extremely risky, but also potentially profitable during the player's favourable circumstances. However, the key to success is to be disciplined and stick to a predetermined strategy, regardless of volatility and short-term gains and losses.

Strategies for low-volatility games

In games such as baccarat or some low-volatility slots, players may choose to bet more aggressively, given that potential losses will be smaller. In such cases, it can be beneficial to gradually increase bets after each win, using the consistency of small wins to build a more appropriate total bankroll. Any of the progressive strategies also work well. Now you know all about volatility, it's time to put this knowledge into practice!