Explanation of Bankroll
The practice of efficiently managing your poker bankroll is referred to as bankroll . Management , often abbreviated to 'BRM', is an essential principle that can greatly impact a player's success in the game.
There exists a subtle distinction between the concepts of 'investing' and 'gambling' in the realm of poker. Poorly managed funds BRM can contribute to our poker involvement being labeled more as 'gambling' rather than 'investing'.
Typically, the term ' bankroll ' is shortened and simply referred to as 'roll'.
Example of Bankroll used in a sentence -> The potential games seemed very appealing, but unfortunately, our bankroll just wasn't adequate for it.
Incorporating Bankroll into Your Poker Strategy
Proper bankroll management is centered around ensuring we have sufficient buy-ins within our bankroll to weather any potential downswings that may arise from variance (or sporadic poor performance). Given that variance differs across cash games, MTTs, and sit-n-goes, our bankroll management strategies should be tailored accordingly.
Even among players venturing into the same type of game, various strategies for bankroll management exist, with some adopting a more aggressive approach than others. Thus, a universal strategy for bankroll management does not exist. The primary focus should be on managing our ROR ('risk of ruin'), which is the percentage likelihood of going broke based on a specific bankroll management plan. Considering the unpredictable nature of variance, every strategy carries some risk of going bust, but it is feasible to maintain a low enough ROR that it becomes negligible or at least acceptable.
There are online calculators available that assist players in determining their ROR by inputting various factors, such as win rate, standard deviation, and number of buy-ins. Note that elements like 'standard deviation' will typically need to be obtained from tracking software. As a general guideline, an ROR below 5% is often viewed as acceptable, although this can vary per individual. For instance, if you have the option to refill your bankroll after depleting it, higher ROR values could be manageable. Conversely, if losing your poker bankroll would signal the end of your poker journey, it's wise to aim for a minimal ROR whenever possible.
However, it’s important to recognize that a BRM strategy involves some compromises. Many players mistakenly believe that lower ROR values automatically translate to superior BRM strategies. This isn't necessarily true. Take, for instance, a top-tier poker player with a $1 million bankroll who is playing at the lowest online limits. While he minimizes his ROR through such play, it is evident that he isn’t maximizing his potential long-term earnings. Given his exceptional skills and substantial bankroll , it is beneficial for him to willingly accept a slightly elevated ROR and strive to increase his stakes without delay. Although most of us don’t possess a bankroll of $1 million, there are cash game players who may find themselves playing at $0.01/$0.02 NLHE despite having several hundred dollars available. Therefore, a good BRM strategy aims to advance through the stakes as vigorously as possible while still managing to keep the risk of ruin within acceptable boundaries.
BRM in Cash Games
As a commonly accepted practice for cash games, players are advised to maintain at least 25 buy-ins in their bankroll corresponding to the limits they are playing. For example, if a player plans to transition to the $0.05/$0.10 level, they should ideally have a minimum of $250 in their roll. At this point, it might be prudent to take a small chance at the higher limit, perhaps reverting back if five stacks are lost. However, this serves merely as a general guideline; several principles must also be considered.
- This recommendation leans towards a conservative approach. Players with experience and proven success can adopt a more aggressive BRM strategy if they possess the discipline to retreat quickly when they encounter losses.
- More assertive BRM strategies are feasible if you have the capacity to replenish your bankroll from external sources.
- As you climb higher in stakes, it’s advisable to adopt tighter BRM strategies, as your skill advantage will diminish when pitted against tougher competitors.
Below is a potential cash game BRM framework inspired by the offerings at 888poker.
| Buyin Size($) (editable) | Buyins needed for shot | Shoot at ($) | Shot-Size | Rebuild at ($) (i.e., Move down limit at this point) |
| 2 | 20 | 40.00 | 5 | 30.00 |
| 5 | 20 | 100.00 | 5 | 75.00 |
| 10 | 20 | 200.00 | 5 | 150.00 |
| 20 | 20 | 400.00 | 5 | 300.00 |
| 30 | 20 | 600.00 | 5 | 450.00 |
| 50 | 25 | 1,250.00 | 5 | 1,000.00 |
| 100 | 30 | 3,000.00 | 5 | 2,500.00 |
| 200 | 35 | 7,000.00 | 5 | 6,000.00 |
| 400 | 35 | 14,000.00 | 5 | 12,000.00 |
| 600 | 40 | 24,000.00 | 5 | 21,000.00 |
| 1000 | 40 | 40,000.00 | 5 | 35,000.00 |
| 2000 | 50 | 100,000.00 | 5 | 90,000.00 |
Tournament and SnG BRM
A primary contrast between Tournaments/SnG’s and cash games is the variance involved. This is particularly pronounced in tournaments (MTT’s). While cash game professionals typically earn a steady profit, tournament players may experience long stretches, sometimes weeks or even months, without a substantial win. Live tournament players might go without a significant financial return for years on end.
Although tournaments are often seen as more lucrative than cash games (due to softer competition), a larger bankroll is essential to withstand the fluctuations. Playing MTTs with only 25 buy-ins poses a considerable risk of ruin. It’s advisable to never wager more than 1% of our bankroll on a tournament entry fee . For instance, if you have $100 in your tournament bankroll, you should not invest more than $1 on a single tournament buy-in.
SnGs present slightly less variance due to the limited number of entries per game (usually between 2 and 10, although larger field SnGs are offered on many platforms). Thus, the BRM strategy for SnGs might resemble that of cash game management (as previously discussed), but it still carries more variance than cash games, necessitating stricter bankroll guidelines. A reasonable approach would be to refrain from investing more than about 3% of your bankroll on any single SnG buy-in, although this can vary based on several factors, including the SnG format. Keep the following in mind:
- The larger the number of participants, the increased variance, leading to a greater required bankroll.
- The greater our skill advantage, the smaller the bankroll requirement.
- The faster the tournament format (for instance, turbo or shallow-stacked tournaments), the greater the needed bankroll. (Conversely, deep-stacked tournaments with slower structures present lower variance).
- Our ability to downgrade limits or replenish our bankroll should influence our chosen BRM strategy.
Once you’ve settled on a BRM strategy, it is crucial not to deviate from it based on individual performance on any given day. In numerous instances where players deplete their entire bankroll , it’s often a result of abandoning their BRM strategy at some point, perhaps due to attempting to recover losses. Disciplined players seldom go broke because they adhere strictly to their established bankroll management system.
See Also