bankroll question

Is $500 enough for the.10cent/.25cent?(no limit ring)
How do figure out how much is enough?

[Acehawk74]

Beginner's FAQ

Check that link out, it will give you a lot of helpul information... its the FAQ for this forum.

Secondly, to answer your question, yes it is more than adequate for .10/.25. Here is a link to the Small Stakes PL + NL Forum's FAQ as well that has this information.

PL + NL Forum FAQ

Hope this helps.

Acehawk

[4_2_it]

For NL, I use 20-25 buy-ins as my guide. $500 is a decent bankroll to start. Look at the Bonus Whoring forum and consider that which should never be named (rakeback), which should help you as you get started. The previous poster's links to the FAQs are also must reads.

Welcome to the forums.

Thanks guys.

[pzhon]

This is a frequently asked question. Unfortunately, the sections on bankroll management in the FAQs are poor.

[img]/images/graemlins/diamond.gif[/img] If you are a losing player, you will burn through any amount.

[img]/images/graemlins/diamond.gif[/img] A marginal winner needs a much larger bankroll to enjoy the same level of safety as a solid winner.

[img]/images/graemlins/diamond.gif[/img] The bankroll you need to feel comfortable depends on your personal risk tolerance, and your ability to move down to lower limits if you hit a bad streak.

These are captured in the following formula, which applies to NL, limit, and tournaments:

<ul type="square">Bankroll &gt;= c * (Standard Deviation^2)/(Win Rate). [/list]Standard deviation depends on your playing style. If you buy in short, or your opponents buy in short, this can decrease the standard deviation substantially. In online NLHE with stacks of 100 BB, the standard deviation is typically between about 60 and 120 big blinds per 100 hands.

Your win rate will change as you improve your game, and as you change the levels and sites at which you play. Established winners report win rates of up to 40 big blinds/100 at NL $25, about 20 big blinds/100 at NL $100, and about 10 big blinds/100 at NL $400 and higher online games. Keep in mind that many experienced players win less than these amounts.

The value c depends on you. Most people seem to be comfortable with a value of c between 2 and 4. Under some assumptions, that corresponds to the common suggestion for limit players to have 300 big bets.

<ul type="square">Example: Someone who wins 20 bg blinds/100 with a standard deviation of 100 big blinds/100 and who uses c=3 should feel comfortable with a bankroll of 3*10000/20 = 1500 big blinds, or 15 buy-ins.[/list]Players in low stakes games typically should be less cautious than high stakes players, since their balances are less likely to resemble the total amounts of money they can afford to lose on poker. If you lose a balance of $100, it is usually not a large personal sacrifice to find another $100 to try again next week. If you lose a balance of $100,000, this typically means you will not be able to play for high stakes for a long time.

Many people say that you should have 20 buy-ins. However, that does not necessarily fit you. If you are crushing the low stakes games, 20 buy-ins is far too cautious, and it means you will waste time building a bankroll to play higher games. If your win rate is much lower, because you are a weaker player or you are playing in tougher games, 20 buy-ins is not sufficient, and it will leave you exposed to a substantial risk of ruin.

People often talk about the extreme variance of 6-max games. However, the standard deviation of shorthanded games is not much larger than in full games. People see larger swings when they don't have as much of an advantage, so they win at a lower rate.

Note that the bankroll requirements do not depend on how many tables you play simultaneously, how many hands per hour you play, or the length of your sessions. These don't give you larger swings. Playing more hands per hour gives you the same swings faster.

Thank you for this very useful information. I appreciate it.

[SheridanCat]

[ QUOTE ]
This is a frequently asked question. Unfortunately, the sections on bankroll management in the FAQs are poor.


[/ QUOTE ]

People were asked to participate in putting the FAQ together, but very few bothered. Now the FAQ lives on the Poker Wiki where anyone can contribute. Your answer is excellent and comprehensive, please consider putting it in the Wiki.

Regards,

T

[checkmate36]

How about for limit? I have been searching for the math behind 300 BB's and the FAQ doesn't show it.

From what I understand 300 BB's is for a player who earns 1 BB per hour. If you earn less, you probably need more. Also 3 players could all earn 1 BB per hour but considering the playing style of each they could all have different standard deviations and require something other than 300 BB's.

Lets say mr. tight, mr. average and mr. wild all earn 1 BB per hour. The tight player probably wont need the full 300 since his swings should be less while mr. wild who plays more hands to earn his 1 BB per hour may need more due to his larger swings. Sorry if long and thanks for the info. Didn't mean to hijack from NL to limit either.

[SheridanCat]

[ QUOTE ]
How about for limit? I have been searching for the math behind 300 BB's and the FAQ doesn't show it.


[/ QUOTE ]

The FAQ is now here primarily. The second link in the bankroll section points to a BruceZ dominated thread on the bankroll subject.

The 300BB guideline is just a guideline. All the things that pzhon mentions are factors that adjust that number. What you really need to decide is what your risk-of-ruin is given your current win rate, standard deviation, etc. The BruceZ thread will help with the math behind that.

Regards,

T

[pzhon]

[ QUOTE ]
[ QUOTE ]
This is a frequently asked question. Unfortunately, the sections on bankroll management in the FAQs are poor.


[/ QUOTE ]

People were asked to participate in putting the FAQ together, but very few bothered.

[/ QUOTE ]
I made many suggestions, not all of which were included.

[ QUOTE ]
Your answer is excellent and comprehensive, please consider putting it in the Wiki.


[/ QUOTE ]
There appear to be multiple pages on bankroll management. Please feel free to add my essay (with attribution, of course) to that FAQ where you think it best fits.