Slot's Volatility: Find the Best Slots With the Right Volatility For You

Volatility or variance in slot machines refers to the level of risk associated with a particular slot game. It gives players an idea of how often they can expect to win and the size of the payouts.

In this article we will talk about the nature of volatility in gambling, what it is like, how to calculate and use it when choosing slots.

What does volatility mean in slots?

The volatility of a slot refers to how often and how much the slot pays out. A highly volatile slot means that it pays out less frequently, but when it does, the payouts are generally larger. On the other hand, a low volatility slot pays out more often, but the payouts are typically smaller.

It's important to note that the volatility of a slot is not an indicator of its overall payout percentage or the likelihood of winning. It simply signifies the risk level associated with playing a particular slot.

Types of volatility in slots

Typically, slot volatility is categorized into three major types (low, medium, and high), as previously mentioned. However, for finer distinctions, some gambling enthusiasts and casino operators choose to break it down into five.

High volatility

High volatility slots are the ones which don't pay out frequently but the payouts are larger when they do land. Players interested in these slots are typically after significant wins and have a bankroll to maintain their play during potential long dry spells.

Medium-high volatility

Medium-High Volatility. These slots are slightly less risky compared to high volatility ones. They don't pay out as frequently as medium or low volatility slots, but when they do, you could land a quite substantial win. This category fits players who are comfortable with a certain level of risk but also want a blend of regular and sizable wins.

Medium volatility

Medium Volatility. Medium volatility slots strike a balance between low and high volatility games. They offer a mix of decently sized payouts at a reasonably frequent rate. This kind of slot is a good middle-ground, attracting players who want fairly regular wins without waiting for a long time.

Low-medium volatility

These slots pay out relatively frequent wins, but the prizes are not really high. They're less risky than medium, medium-high or high volatility slots. If a player has a smaller bankroll and wants to play for a longer time without risking too much, these slots are more suitable.

Low volatility

Low volatility slots are designed to provide players with plenty of wins, but payouts are generally smaller. This type of slot is an excellent option for conservative players with smaller budgets who want to extend their gameplay. It's also a less risky choice for new players who are still familiarizing themselves with slots.

Remember. the volatility of a slot does not impact its Return to Player (RTP). RTP is a theoretical percentage stating how much of the bet money the game will return to the players over time, and it's calculated over millions of spins. It's important to combine the knowledge of both volatility and RTP when choosing which slots to play.

Slot's volatility calculation

To calculate the volatility of a slot machine, you need to collect data on the payouts of the machine over a specific period of time. Here is a step-by-step guide.

• Step 1: Determine the number of spins analyzed
  Collect data on a sufficient number of spins, such as 1,000 or more, to have a statistically significant sample size. The more spins you analyze, the better your volatility calculation will be.
• Step 2: Record the payouts
  Keep track of each individual win and loss during the analyzed spins. You can categorize the wins into different payout categories, such as small , medium and big wins.
• Step 3: Calculate the average win amount
  Find the average win amount by summing up all the wins and dividing it by the total number.
• Step 4: Calculate the standard deviation
  Find the standard deviation of the wins by subtracting the average win amount from each amount, squaring the result, summing up all the squared differences, dividing it by the total number of wins, and taking the square root of the result.
• Step 5: Calculate the volatility
  To calculate the volatility, divide the standard deviation by the average win amount and multiply it by 100. The higher the result, the more volatile the slot machine is.

For example, let's assume you analyzed 1,000 spins and found an average win amount of $0.50 and a standard deviation of $2.00. The volatility calculation would be (2.00/0.50) * 100 = 400%. This means the slot machine is highly volatile.

Keep in mind that volatility calculations can vary depending on the specific data and methodology used. Additionally, some slot machines may have predetermined volatility levels set by the game developers.

Why is volatility important in slots?

Volatility in slots is important because it gives players an idea of the risk involved in playing a particular slot machine. Here's why it's significant.

• Bet Sizing: If a slot machine has high volatility, it means a player might have to spend more money (and thus make larger bets) to hit the big wins. For players with a smaller bankroll, this might not be the best strategy, and they may prefer to play lower volatility games.
• Time Commitment: High volatility slots can require a larger time commitment. They typically feature longer "dry spells" where wins can be few and far between, but when they do hit, they will be significantly larger. If a player doesn't have a lot of time to commit to playing, they might prefer a low volatility game.
• Personal Risk Tolerance: Volatility can help gamers understand and manage their personal risk tolerance. If a player enjoys high-risk/high-reward gameplay, they may gravitate towards high-volatility slots. Conversely, someone who enjoys a steady stream of smaller wins might find more appeal in low-volatility games.
• Entertainment and Excitement: For some players, the suspense of playing a high volatility slot is a part of the entertainment. The potential of landing a huge win is exciting, and even though these slots may require more patience and a larger bankroll, the payoff can be worth the wait.
• Strategy: Knowing the volatility can influence a player's strategy. For example, on high-volatility slots, it might be wise to bet lower amounts to prolong gameplay and wait for bigger wins. 

Meanwhile, on low-volatility slots, betting high might make more sense since you expect to get more payouts.

Slot Volatility Demystified: Understanding the Impact on Payouts & Risk

Volatility is indeed an integral parameter when it comes to casino gaming, but it can sometimes be misunderstood, leading to several misconceptions or myths. Let's try to address some of those.

• Myth 1: High Volatility Slots Are Rigged
  Fact: High volatility slots may seem to be against the players due to their infrequent payouts, but that doesn't mean they are rigged. These slots are designed to produce bigger rewards although less often, and they comply with the standards of fair gaming and random outcomes set by regulatory bodies. It's not that they are rigged, but they are designed for a high-risk, high-reward style of play.
• Myth 2: Low Volatility Slots Always Let You Win
  Fact: While low volatility slots offer frequent payouts, it doesn't mean you're always winning more than you bet. They deliver smaller winnings more often, which could be misleading, making you think you're winning, whereas these small wins often don't cover the totals of your bets.
• Myth 3: High Volatility Slots Pay More Over Time
  Fact: This is not necessarily true. The concept of 'return to player' (RTP) percentage is distinct from volatility. The RTP is the theoretical long-term returns to the player. A slot could have high volatility while still having a lower RTP and vice versa. High volatility slots offer the potential for bigger wins, not necessarily more wins over time.
• Myth 4: Volatility Can Be Controlled By Players
  Fact: Volatility is fixed by the slot’s design and math model and cannot be influenced by player actions. Players can choose between high or low volatility slots based on their preference and strategy, but the inherent volatility of a particular slot game cannot be changed.
• Myth 5: Volatility Equates To Risk
  Fact: While volatility does contribute to the level of risk, it's not the sole determinant. It's important to remember that other factors also influence risk, including a player's bankroll, length of play, bet size, and elements of the specific game.

How to determine slot`s volatility when information is lack

The volatility, or variance, of a slot machine is calculated by the game developers and isn't usually publicly available but it can be inferred from the paytable and through gameplay, however, it's not something that can be accurately calculated by a player.

Here's rough breakdown of factors that could infer the game's volatility:

• Paytable: This details all possible winning combinations and their corresponding payouts. If the majority of rewards are small but frequent, it's probably a low volatility slot. If top payouts are massive compared to the smallest ones, it might indicate a high volatility slot.
• Hit Frequency: If a slot machine offers payouts more frequently but these are of smaller amounts, it's a sign of a low volatility slot. High volatility slots have fewer but potentially higher payouts. Look at size and frequency of jackpots and bonuses: Slots with top payouts or jackpots of tens of thousands or even millions are almost certainly high variance. Similarly, if the slot has a feature that can deliver high multiple payouts, like a free spin round with multipliers, it could be a higher volatility machine.
• Experience testing: Spend some time playing a slot machine, if you see regular payouts, then it’s a low volatility slot. But if there are long dry spells and suddenly you win big, it’s a high volatility slot.
• RTP (Return to Player): While RTP doesn't directly relate to volatility, generally, high one slots have lower RTP percentages since these types reward players less frequently. However, when they do reward, it's usually a more significant amount.
• Free Spin or Bonus Features: These features can give an idea about the volatility. In high volatility slots, these features typically offer higher payouts but occur less often.
• User Reviews and Slot Provider: Sometimes, providers might disclose the volatility level, but it's not always the case. User reviews and slot review platforms can help determine whether a slot has low or high volatility.

Remember that volatility doesn't indicate your chances of winning; it merely guides what kind of win to expect.

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