Good bankroll management is the foundation of good poker playing, no matter how experienced you are or how you choose to play. To figure out how much cash you require to be able to play poker and not go broke, you must consider variance, game selection, and your own risk tolerance. The various types of poker have different bankroll requirements, and not respecting them has killed more poker careers than bad beats ever will.
The Foundation of Bankroll Management
A poker bankroll is the sum total of money that is specifically allocated to playing poker. This money must be independent of your living expenses, emergency funds, or other financial obligations. The main idea of bankroll management is to have the ability to withstand the downswings that every poker player has to face, no matter how good or bad they are.
The concept of bankroll management became widely understood during the rise of online poker, when players suddenly had access to detailed statistics and tracking software that revealed the true extent of poker variance. Prior to online poker, most players were guided by their intuition and small sample sizes of live poker games, which did not provide an accurate measure of the swings of the game.
Generally, professional players advise maintaining a bankroll that can absorb 20-40 buy-ins of downswings, but it is highly dependent on the kind of game being played, the level of your edge as well as risk aversion. Less risk-averse aggressive professionals may be comfortable with 15-20 buy-ins, whereas more conservative players may want 50-100 buy-ins.
Bankroll Requirements for Cash Games
The most conservative way of managing the bankroll is usually needed in cash games because of the opportunity of experienced opponents to reload their funds and play further. In no-limit hold’em cash games, most experts will advise that you should have 20-30 buy-ins of the stakes you are playing.
Someone who is sitting down at a $1/$2 no-limit hold’em game with a buy-in of $200 should have a bankroll of between $4,000 and $6,000 to manage risk. It may appear to be too much to casual players, but professionals who rely on poker earnings may be required to have 40-50 buy-ins or even more at all times. This is so they have enough to sustain them during prolonged bad runs.
Limit hold’em and other limit games generally need a higher bankroll in relation to stakes because the hourly win rates are lower and the grinding period is longer. A good limit hold’em player may require 300-500 big bets to adequately bankroll their stakes.
Tournament Bankroll Management
Tournament poker has special considerations to its bankroll because of its top-heavy pay structure and high variance. Even experienced tournament players can go long stretches without a big cash, so good bankroll management is essential to survival.
In single-table tournaments and sit-and-go, 50-100 buy-ins are enough to be safe against variance. Multi-table tournaments are even more conservative, and tend to recommend 100-200 buy-ins as a standard recommendation to serious tournament players.
The amount that you buy-in should not exceed 1-2% of your total bankroll. A player with a $10,000 bankroll should not usually play tournaments with buy-ins above $100-200, but it can be reasonable to take a stab at higher buy-ins with the right shot-taking strategy.
Online and Live Game Considerations
Online poker encourages a more cautious approach to bankroll management. This is because of its faster play, greater variance and ease of increasing stakes. It makes playing 3–4 times faster than live players and speeds up both wins and losses, as online players are able to observe more hands per hour.
Live poker permits a more aggressive bankroll management due to the slower rate of action, easier games and the opportunity to supplement winnings with other sources of income. But there are other costs of live play such as travel, food, and tips that need to be considered when calculating the bankroll.
The emergence of crypto casinos has introduced new considerations for online poker bankroll management. These platforms are more anonymous and have quicker transactions, appealing to players who prefer anonymity and cryptocurrencies. However, the anonymity of the sites can make it more difficult to track the long-term consequences and disciplined bankroll management. It is especially important that players who use anonymous crypto casinos are cautious with record-keeping and may consider having slightly higher bankrolls to cover the lack of oversight and possible regulatory ambiguity. There is also the added volatility of cryptocurrency that fiat currency players do not have to deal with. Nevertheless, it is possible to adjust the bankroll strategy to the anonymous crypto casino environment even though there are some challenges to it.
Up and Down in Stakes
Knowing whether to step up or down in stakes is one of the most difficult factors in bankroll management. It is hard to resist the desire to make shots at higher stakes, particularly when one is on a winning streak, but the players who adhere to proper behavior follow preset rules.
The general rule is that you need 25-30 buy-ins at the new stakes level to move up, and move down automatically when your bankroll falls to 15-20 buy-ins at your current level. This establishes a buffer zone that does not allow constant movement between stakes because of normal variance.
When done correctly, higher stakes shot-taking can be profitable, but should form a very small percentage of your bankroll, and only when you are sure that you can beat the new stakes. You should not take a shot which uses over 5% of your bankroll, as this violates the principles of good bankroll management.
Special Game Formats
Other specific formats, such as mixed games, pot-limit Omaha, etc., may also necessitate modified bankroll recommendations. High variance and complex, pot-limit Omaha usually requires 30-40 buy-ins in a cash game and 150-300 buy-ins in a tournament.
Mixed games involve knowledge of more than one format and typically are preferred by more skilled and experienced players. When playing mixed games, players are advised to ensure that their bankrolls are larger, particularly as they learn to play different formats.
Short-handed and heads-up games have greater variance and often take 25-35 buy-ins in cash games. These formats have a higher variance because more hands are played out of position, and against tougher opponents who will play short-handed.
Risk Tolerance and Psychological Factors
Bankroll management is not strictly mathematical. Psychological considerations are important in defining suitable requirements. The downswings are stressful situations that should be managed by keeping bigger bankrolls to retain the mental game and the ability to make the right decisions.
The main source of income also influences the needs of bankroll. The players who have a secure outside income can risk more, and the professional players who rely on poker income must have maximum security.
According to Webopedia, risk management in any field requires understanding both quantitative measures and qualitative factors that affect decision-making. This rule translates directly to dealing with bankroll management in poker, where mathematical rules should be weighed against personal situations as well as comfort levels.
Conclusion
Bankroll management is key. You must have enough money to cover your desired stakes. You should move up or down stakes according to the established rules. Above all, you should never risk money that you cannot afford to lose.
The secret to long-term success isn’t in avoiding risks at all, but in taking calculated risks that are supported by the bankroll. Respecting variance and being disciplined with bankroll management are the best things players can do to ensure they can turn their long-term edge into a long-term career in poker.