It's Sooted: Bankroll Management

"It's Sooted" Blog Archive

Disclaimer: The opinions in this blog are all mine. You can choose to use the information in this blog as you choose, but don't flame me if you don't like the information provided. Thank you!

I asked to give me suggestions on what to write blogs about, so I'm first gonna write about those and then get to other topics. One of the suggestions was bankroll management, so I'm gonna write a little short blog on the importance of bankroll management and a few different looks at bankroll management.

The Norm: After Chris Ferguson's $0 to $10,000 challenge, the accepted norm for bankroll management is his method. In the Fullt Tilt Poker Pro Tips, Ferguson states:

• I'll never buy into a cash game or a Sit & Go with more than 5 percent of my total bankroll (there is an exception for the lowest limits: I'm allowed to buy into any game with a buy-in of $2.50 or less).
• I won't buy into a multi-table tournament for more than 2 percent of my total bankroll and I'm allowed to buy into any multi-table tournament that costs $1.
• If at any time during a No-Limit or Pot-Limit cash-game session the money on the table represents more than 10 percent of my total bankroll, I must leave the game when the blinds reach me.

These are very good rules to follow if you want to slowly build a bankroll which Chris did over a very long peroid of time. With these rules, a player is never risking a large part of their bankroll, and also keeps building a bankroll with a maximum set amount you can win at a table.

My Method: The key to bankroll management is find something that works for you. A player who has no fear can risk their whole bankroll and still play the same way as if they were risking less than 1%. Most players I imagine could not play the same. Most would try to cash and this would change the way they play and also effect that players chances of winning. I follow a somewhat similar rules as Ferguson, but my method is a little less strict on the amount of money I have on the table or risk in a tournament. These are my rules that I follow with a few exceptions following the rules.

• I will never risk more than 15% of my bankroll on a cash game table. Meaning if I have a $200 bankroll, I will never buy-in to a game with more than $30. If I have $100, I won't buy-in for more than $15, I think you get the picture. This does not risk a large percent of your bankroll and also gives a player a chance to build their bankroll as well.
• Once I have doubled my buy-in at a cash game table, I will leave the table when I have lost have my winnings. For example, I buy-in to a game for $10. Once I hit $20, I do not leave the table as Ferguson suggestions. I will leave once I have lost half of what I have won. So in this case, I will leave the table once I drop below $15. This gives the player a positive in the bankroll, but also gives a player a chance to make more than just one buy-in at the table.
• I must have 20 buy-ins to play in a particular freezeout tournament. My bankroll is $300. If I follow the 20 buy-in rule, the maximum buy-in I could play is a $15 tournament. I like this because I am not risking a huge portion of my bankroll, but still have a huge chance to make a little money in the tournament.
• When playing a rebuy, I also follow the 20 buy-in rule but you have to also calculate the amount of rebuys you can have in this tournament. To calculate how much you are risking in a rebuy, I always say 2.5 double rebuys and an addon. You can also have 5 single rebuys. The .5 rebuy is the addon at the beginning of a tournament. So if I'm playing a $3 rebuy, I would calculate the amount at risk as follows: 2.5 double rebuys/ 5 single rebuys ($3 for a rebuy x 5 = $15) + 1 add on ( $3) = $18 for the total tournament. So in order to play the rebuy correctly, I would need a bankroll of $360.
• Suggestion: Stick to freerolls intill your bankroll is at least $10. Stop playing buy-in tournaments once your bankroll hits below $5. This means you will always have at least a little bit of money remaining in your bankroll even if its a litte ole $5. See taking chances on why playing this low is okay!

All of these rules are the bare minimum that is needed to play at that level. Meaning if you don't cash at that level, you will need to drop down to a low buy-in as your bankroll is at a lower level. I am often play safe with my money and end up well below my minimum requirements. Also, I rarely play cash games which is why I am willing to risk more in a game. Cash games are a quick way to make money but also a quick way to lose it.

Taking Chances: Now all these rules for buy-ins are great, but you can also take chances with your bankroll as well. A lot of the great things in the world were made great by people who take chances. By no means do I mean if you have a $100 bankroll to go go play in a $75 tournament. When taking a chance, I would never risk more than 25% of my bankroll. And once I take that chance, I would then go back to my original set of rules whether I succeed or not with the only exception being those with bankrolls less than $20. For example, if you have $10 and make $5 in a $2.50 tournament, it would then be ok to take another 25% chance in another tournament. It's ok to take chances with your bankroll as long as you are willing to live with the consequences of the action. I've taken several chances with my bankroll, some have been successful, others not so successful, but I can live with the results. It's all about your own feelings when taking chances.

You got the money, but you may not have the skills: Another thing about bankroll management is playing limits that you are capable of making money at. I have, for example, a $5,000 bankroll. Using my 20 buy-in method, the highest tournament buy-in I can play is $250 tournament.Just because I have the bankroll, does not mean I should be playing at that level. If my ability level is at a $10 level, there is no reason to play up at a level where I will not make money and in turn knock my bankroll down in the process. Just because you have the bankroll, does not mean you should be playing up to the highest buy-in in your bankroll. But this also goes into taking chances. If you want to take a shot out of your playing level, that is a chance that you are going to have to live with. In my opinion, a player needs to play at a level they are comfortable with and also a level where that player can make money.

Find What Works For You: Chris Ferguson's method and my method are just methods that have worked for us. The key for bankroll management is finding what works for you. If you are a maniac and willing to risk all your bankroll on a particular tournament then go ahead. If your a nit and only want to risk 1% of your bankroll than so be it. The key to bankroll management and poker in general is finding something that works for you. Bankroll management is in place to keep you from going broke, but if you don't mind going broke, bankroll management may not be something for you. As I've stated many times find what is good for you and go with it, you may be the next Ferguson $0 to $10,000 challenge winner using your own method. Go with what works for you!

Thanks for reading my second blog in the series. Next blog should be out next week some time! As always if you have something you would like me to blog about shoot me a pm or comment it in the blog! Thanks and Have a great day!