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Bankroll Management - The Fundamentals
Bankroll Management
Let me start by saying that good bankroll management (BRM) really is one of the building blocks and an essential part of being a successful poker player in the long-term. Constantly we are told that short-term results are unimportant and we should concentrate on making the correct decisions, happy in the knowledge we are ‘winning’ long-term, but what good is this if we don’t have the bankroll behind us to give ourselves the chance to experience the long-term?
I’ll start by setting out some ‘base levels’ with regard to BRM for each format which we should all start from and then discuss the additional factors which may lead us to increasing or decreasing the ‘base level’.
Cash Poker – 30 Buy-ins
Sit ‘N’ Gos – 40 Buy-ins
MTTs - 75 Buy-ins
The above are good basic rules to stick to, but the following are factors which can increase or decrease the amount of buy-ins required:
The stakes you play – While it is not 100% true of all players, it is generally accepted that as you increase the stakes you play, the opposition will be tougher and more aggressive which will generally lead to you having a smaller edge and experiencing higher variance situations which leads to bigger swings in your results and means you need a larger BR.
The games you play – Which variant of poker you choose to play will have a large impact on the variance involved which in turns affects how large your bankroll needs to be. For instance, Omaha Hi/Lo will generally be the lowest variance form of the game (of the most commonly played) so the BRM requirements would be less than a game like Pot Limit Omaha where the ups and downs will be much larger.
Another aspect under game selection is what game type you play; DYMs are lower variance than HU SnGs and so would require less BIs, whereas MTTs with turbo structures will be higher variance than deepstacked MTTs and so would require a larger BR to play.Your personal goals and circumstances – If you play for a living and intend to be withdrawing regularly then your BR is your livelihood and losing it takes away your ability to continue playing the game and earning a living. A recreational player may not see the money as a significant amount, and while this does not mean BRM should be disregarded, it does mean that if they are happy to potentially re-deposit then they can be less strict with the BRM requirements.
The number of players in your games – The less players there are at the table the higher the variance will be, so 10 handed games will be the lowest variance, while at the other end of the scale HU will be the highest variance.
Your win-rate - A marginal winner will experience larger downswings than a player with a higher win-rate and so will need a larger BR. If you are new to the game, you should probably increase your BR requirements as you will be less experienced and your win-rate will probably not be as high as you think it is, even if your early results have been positive. Remember, a losing player can never have a big enough BR, as they will always lose long-term, the only thing they can do is ensure their money lasts as long as possible.
Dropping Limits – If you are very disciplined and willing to drop down limits quickly if you are losing, then you can afford to have a smaller number of BIs for the stakes you play.
One very important thing to remember is that through good bankroll management strategy, we are not only trying to avoid ‘going broke’ but also the fear of going broke. Practising bad BRM can not only result in going bust, but can also lead to you ‘playing scared’ which means you could be playing too tight or too passively which can negatively impact your ability to beat the game.
For the vast majority of people, poker is and will always be a hobby which we play for fun so we should stick to playing at levels where it does not hurt to lose
Lambert180
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