bankroll requirements

[Navers]

what kind of bankroll do you need for SNGs? Is it proportionate to the buy-in of the tournament? I want to do $10 SNGs.

[Jman28]

I'd like to know the same thing.. I've heard 10x the buy in and 30x the buy in.

[La Brujita]

I think 25x BB is a good bankroll. 10x is very low imo (especially since I have lost 11 in a row on two separate occasions).

[holeplug]

It depends on who you ask but the general concensus seems to be anywhere from 15-30 buyins. IMO you have to really suck to go broke with 30 but if your just starting out it may help you play better since you won't be looking at your bankroll everytime you go on a 3-4 SNG without finishing ITM.

[pzhon]

[ QUOTE ]
what kind of bankroll do you need for SNGs? Is it proportionate to the buy-in of the tournament? I want to do $10 SNGs.

[/ QUOTE ]

If you are a losing player, no bankroll is sufficient.

If you are a winning player, the Kelly Criterion (play to maximize the logarithm of your bankroll) recommends having a bankroll of variance/edge. My variance for 10-player NL SNGs is about 3 square buy-ins, and that should not vary much from player to player. If your ROI is 25%, you should have a bankroll of 3/.25 = 12 buy-ins. If your bankroll drops below this, you should consider stepping down; below half it is strongly recommended.

A complicating factor is that your ROI is probably higher at lower buy-ins. Even if you have the bankroll for a higher level, the lower levels may be more profitable.

[SumZero]

Like all bankroll questions this comes down to two simple issues:

- What is your acceptable risk of ruin? (how bad is it if you lose it all)

- What is the expected distribution of results? (your win loss rate)

Obviously if your ROI is negative then your bankroll has to be large enough to cover all of your games forever (in the long run infinite).

Lets pretend that you play UB 10+1 10 handed SNGs. Lets also assume that you come 1st 1/8 the time, 2nd 1/8 the time, and 3rd 1/8 the time. This represents a ROI of about 13.6% (which is hardly unreasonable - my ROI is about 26% and others on here have ROIs near 50%).

Assume you are comfortable with a risk of ruin of up to 50% (but no more). To play now you only need a starting bank roll of about $77, which is 7 SNGs.

Assume you are comfortable with a risk of ruin of up to 35% (but no more). To play now you only need a starting bank roll of about $110, which is 10 SNGs.

Assume you are comfortable with a risk of ruin of up to 20% (but no more). To play now you only need a starting bank roll of about $165, which is 15 SNGs.

Assume you are comfortable with a risk of ruin of up to 11% (but no more). To play now you only need a starting bank roll of about $220, which is 20 SNGs.

If your starting bankroll is 25 SNGs, your ror is around 7%.

If your starting bankroll is 30 SNGs, your ror is around 4%.

If your starting bankroll is 40 SNGs, your ror is around 1.5%.

If your starting bankroll is 50 SNGs, your ror is around 0.5%.

If your starting bankroll is 100 SNGs, your ror is about 1 in 40,000.

So if you know what you ROI is, and you know how comfortable you are with going broke then you can tell what bankroll you need. If you ROI is roughly what I've described about, and you want 95% confidence that you don't go bust then you need about 30 SNG entry fees.

But of course there are a couple of caveats:

- you don't use this bankroll for anything other than the SNGs (for instance I also use my SNG winnings to fund my MTTs which have silly high varience, and at which I'm not sure if I'm a winning or losing player, and hence my bankroll should be bigger than this estimate suggests).

- you don't play any differently when you start to get near broke. you keep your A game at all times. (even though maybe it would be smart to change your game to increase your ITM% at the expense of your ROI).

[Losing all]

That's a good post, and the numbers are very interesting. with a 30+% roi in over 2500 games I've had several 10-15 buyin down swings, and one 20 losing streak. If you're playing with more than fun money it can take a huge toll on your emotions/play. That being said I think $220 is a fairly safe roll for party 10+1.

[Guy McSucker]

seems pretty clear to me that you should read this thread.

I seem to remember talk of a sit and go FAQ. If there is one, this should be in it.

Guy.

[woodguy]

http://forumserver.twoplustwo.com/re...mp;Main=664102