stoli
11-08-2005, 06:46 PM
Hey I got into a discussion about bankroll requirements with someone a while ago and thought I'd post this here. The bankroll required for you to move up is dependent upon the player and your skill level. If you want to figure out what is right for you make a spread sheet on excel.
Label the A1 Cell: Standard deviation (in bb/100)
Label the B1 Cell: Win Rate (in bb/100)
Label the C1 Cell: Risk of ruin (in percentage)
Label the D1 Cell: Bankroll required (in BB's)
Label the E1 Cell: BB of desired level
When you input this value below it enter "2" if you want to play 1/2 for 3/6 enter "6" etc.
Label the F1 cell: Bankroll for desired level in Dollars
Insert this into the D2 cell: =-1*(A2^2/(2*B2))*LN(C2)
Insert this into the F2 cell: =(D2*E2)
If you plug in standard deviation value you get from your poker tracker, estimate a modest bb/100 winrate.
For the risk of ruin value enter your desired level of confidence. If you want to be 95% sure you won't lose it all enter .05 because that leaves a 5% chance for risk of ruin.
If you want to be 99% sure you enter .01.
You'll find that if you win 1 or 1.5 bb and you use a risk of ruin of .01 (99% sure you don't blow the roll) it does usually come out close to 300bb's for the given level. Which is the general advice given for bankroll requirements.
Hope this is helpful for those of you looking to move up.
Label the A1 Cell: Standard deviation (in bb/100)
Label the B1 Cell: Win Rate (in bb/100)
Label the C1 Cell: Risk of ruin (in percentage)
Label the D1 Cell: Bankroll required (in BB's)
Label the E1 Cell: BB of desired level
When you input this value below it enter "2" if you want to play 1/2 for 3/6 enter "6" etc.
Label the F1 cell: Bankroll for desired level in Dollars
Insert this into the D2 cell: =-1*(A2^2/(2*B2))*LN(C2)
Insert this into the F2 cell: =(D2*E2)
If you plug in standard deviation value you get from your poker tracker, estimate a modest bb/100 winrate.
For the risk of ruin value enter your desired level of confidence. If you want to be 95% sure you won't lose it all enter .05 because that leaves a 5% chance for risk of ruin.
If you want to be 99% sure you enter .01.
You'll find that if you win 1 or 1.5 bb and you use a risk of ruin of .01 (99% sure you don't blow the roll) it does usually come out close to 300bb's for the given level. Which is the general advice given for bankroll requirements.
Hope this is helpful for those of you looking to move up.