Effective Bankroll Management.....it takes a lil luck and a lot of learning

Effective Bankroll Management.....it takes a lil luck and a lot of learning

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I feel as though one of the often misunderstood concepts in poker is the idea of holding a bankroll. When I first started playing, I was like most players, I would deposit money, win a little, but eventually give it all away. I would then redeposit and continue the cycle. Before I knew it, I was down $600 and I knew something had to be done. I read some online articles about suggested bankroll sizes, redeposited $50, vowed never to deposit again (this was back in 2004) and proceed to start at the very bottom, $2 NL on Paradise Poker. I had 25 buyins, and decided that this was enough to multi table 8 tables, putting about 35% of my BR (bankroll) on the line at any given time.

I quickly got into a rhythmn and began building a larger bankroll, winning up to $50 in 6 days (pretty good for $2 NL I'd say). As my bankroll grew I began to move up limits, $10 NL, then $25 and I also began to move around to different sites, experimenting with different styles and eventually fell into a groove at $25 NL, growing my Bankroll to $1000. I jumped to $200 NL, buying in for $80 at 2-4 tables and did quite well, growing my bankroll to 2K, and moved sites again, settling in at CD poker and grew my BR to 3K, and began 4 tabling for full buyin. This great run was soon side tracked by some unfortunate beats, some bad luck and my roll began to decrease. Soon it was 2.5K, then 2K. I dropped limits, experimented with styles and soon hit rock bottom, dropping to 1K. It had taken me the better part of 2 years to grind out my bankroll and I had now seen it drop by 67%.

Needless to say I was a little annoyed, a little disappointed and quite unsure oh how I should proceed. I kicked around $25NL and $50NL, tried some $25 and $50 PL Omaha, tried SNG's, Limit holdem, Stud and Stud HL, but never found the success I had at NL. My roll would jump up, then drop down. I was still able to cash out winnings during this time period, but never quite got my building back on track. Although I had cashed out over 10K worth of winnings and have not had a losing year since I started online poker, I was disappointed in my own BR management and knew something had to be done.

My philosophy in the beginning was as follows:

10x buyin for the level you are playing at, regardless of how many tables you want to play.

My philosophy changed to the following:

40 x buyin (could be full, half buyins) for the level I am playing at

My philosophy was:

10% of my bankroll in play at any given time, no more than 4 tables at once

My philosophy now:

70% buyin, 8 tables, no reload unless down to 50% of buyin, reload for max on bust if table is soft, 3% or less at a table to start, no more than 25% in play at any given time, lose two buyins quit.

 

So what then is effective bankroll management for any given player?

That answer is a dynamic and ever changing one, for each player is different and has a different comfort zone. For myself, I prefer to multi table, thus require a larger bankroll. Figure on 40 buyins is safe, adding another 10-20 if you multi table to the extreme level of 8+ in order to handle the potential for swings.

How can I determine my own bankroll size?

Start by determing the amount that you want to buyin at the level you are playing. I prefer 70% buyins, so my bankroll is created by multiplying 40 by the amount I sit down with. $100 NL -> 40 x 70 = $2800 + (10 x 70) = $3500 with the multi table factor added in. If you are comfortable playing with fewer buyins, or single table, then your roll with be a lot smaller. Figure on at least 20 buyins to provide a secure enough cushion and then experiment with the size of your roll. In the beginning, you may be playing a bit outside of your BR (as you will see I am right now) but if you are comfortable enough and still have a sufficient amount of money back, then you will be fine.

My current bankroll building plan (started June 1, 2008)

As I mentioned above, my BR had been depleted and after a few unsuccesful attempts to rebuild, I set out the following plan:

I looked at each month and figured that with solid play I should be able to average $20 in wins a day at $50 NL and over the course of the month accounting for losses should easily be able to win $500. Given my hectic work schedule over the summer (I can usually squeeze 1-2 hours in of play a day if I like), I figured that this amount was conservative enough to allow for a long term building plan, but without making me feel like I wasn't getting anywhere.

With a starting roll of $1100, my targets for each month are: $1700 by July, $2200 by August, $2700 by September, $3200 by October and $3700 by November.

My overall goal right now is to be back to $3500 by the end of October. I am currently 8 tabling at $50 NL and may move up to $100 NL once my roll can sustain 8 tabling, but I have not decided that yet.

My current results are as follows, playing 10 tables at a time.

(I play on 2 sites, $25 PL Omaha Hi Lo on Full Tilt ->2 tables and $50 NL on BetMost -> 8 tables)

Full Tilt : Starting roll $25............current roll $265

BetMost: starting roll $1100........current roll $1425

Overall Bankroll $1690

Basically, utilizing a solid multi tabling philosophy (and a nice little $150 7th place finish in an Omaha HL tourney on Full Tilt) I am almost at my end of month goal for June. I have had some luck, but that has certainly not been the main factor. I am very comfortable with my bankroll and the limit I am at right now, which allows me to just play comfortably and only worry about my game. There will be some ups and downs in the coming months, no doubt about that. But as long as I adhere to my bankroll guidelines and don't try to move up limits until my roll is ready, I will be able to take on any swings that may occur. I have endured some ridiculous swings in my short poker career and feel more prepared than ever to tackle the upcoming stretch. Bankroll magement is not about just having enough to move up limits, its about providing yourself with the security to play your game, ride out misfortune and jump back into the fray without a moments hesitation, even when things seem to be going poorly. Build your roll, build your experience and hopefully there will be success at whatever limits you find yourself at.

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