Risk Tolerance and Moving Up

[madcaller]

As I have slowly progressed to higher and higher NL holdem, I have noticed an adjustment period with each step up to a higher level. As I move from on level to the next my play is affected by the increase in volatility. Simply stated bankroll and stack swings in terms of dollars double. This appears to be comparable to risk tolerance as discussed in finance. For example, just because an event/wager is a positive expected value does not mean a person will take the wager. Just because the odds of a coin flip are set in such a way that it is a +EV wager does not mean an average person will take the wager if the wager is $1,000,000. Despite the fact the most people don’t have $1,000,000 even those that do will most likely not take the wager. This is simple risk tolerance 101.

Even though I normally adjust to the wager size within 1,000 hands or so, I’m curious how changing levels/limits has impacted the play of others and how they have attempted to accelerate the adjustment period.

I have one more important question to the poker veterans on 2+2. I’m sure there have been times that you have been offered the opportunity to play in games where the limits are much higher than your normal play. How do you determine if the limits are within your risk tolerance boundaries, assuming you have an adequate bankroll? Furthermore, how do you prepare yourself for the expected and normal swings in bankroll and stack size at these higher levels?

Thanks in advance for your insights

[Louie Landale]

Bankroll requirements calculations are for robots who will continue to play their same game until the win a lot or go bust. I dare anybody to come up with such a calculation for folks considering taking a shot at a really juicy big game.

For me the problem is [1] getting over the paranoia of playing with the "big guys", and [2] getting used to the often drastic difference in the flavor of the game. The best thing to do by far when feeling out of sorts (for whatever reason), is to play a lot less hands and play them defensively. Once you win a pot or so your confidence may improve, allowing you to play more to your liking.

- Louie