Bankroll Management

This has always been a topic were I have found very few people giving concrete advice or numbers to build a solid bankroll foundation. Bankroll management also tends to be what many pros say is the most important factor for a players long-term success.

When considering the numbers for a poker bankroll it is important to separate poker bankrolls into two categories, session bankrolls and overall bankroll.

Session bankroll is the money that you sit down at the table with, and also any extra money you are willing to play with.

Overall bankroll is the total "poker" money that you have available. Under no circumstances should a player ever play with their entire overall bankroll at one time.

So, how much should a player sit down with?

In a limit game, at a casino, I use the following equation to determine my buy-in:

Pre-flop betting limit+flop betting limit+turn betting limit+river betting limit * 10 = optimal buy in. In a $5-$10 game the amount would be as follows:

(5+5+10+10)*(10)=300

Therefore, the correct buy-in for a $5-$10 game is $300.

In a no-limit game I focus more on the size of the big-blind in the game. In a $1-$2 game I would want to be able to buy in with 100 times the big blind. Therefore I would want to buy in for $200. This is the limit for most $1-$2 NL tables. In addition to the initial buy in I want to have half of my original buy-in in reserve to re-buy if necessary.

Therefore, for a $1-$2 NL game I'd bring $300 with me and usually buy in for $200, re-buying if I feel I have the best of it and get a bad beat early on.

Now, that takes care of the session bankroll amounts. Overall bankroll gets based as a percentage of the figures below. I have adopted the Chris Ferguson theory of bankroll management. His rules are as follows:

* I'll never buy into a cash game or a Sit & Go with more than 5 percent of my total bankroll (there is an exception for the lowest limits: I'm allowed to buy into any game with a buy-in of $2.50 or less).
* I won't buy into a multi-table tournament for more than 2 percent of my total bankroll and I'm allowed to buy into any multi-table tournament that costs $1.
* If at any time during a No-Limit or Pot-Limit cash-game session the money on the table represents more than 10 percent of my total bankroll, I must leave the game when the blinds reach me.

I agree with the final point in an on-line environment since you can join a new table at any time. With a brick and mortar casino I would change to an uber-tight playing style to ensure I don't put my profits at risk and continue to play. I would leave though if my playing profits were reduced in half after achieving the 10% mark. For example, I buy into a $1-$2 NL game with $200, with a $6000 overall bankroll, and build it up to $600, therefore reaching the 10% mark. That represents $400 in profits. Since half of that is $200 if my session bankroll gets reduced to $400, while playing wicked tight, I would leave when the blinds came around to me.

These bankroll rules (as well as amazing playing ability) helped Chris turn something into nothing by moving up to a higher limit only when his bankroll was prepared for it. By following these rules and staying disciplined with bankroll management a good player will turn into an top-level player at a consistent and reasonable pace, allowing them the chance to absorb the many differences from one level to another.

So, by taking these numbers into consideration, a player would need an overall bankroll of $6000 to play at an optimal (comfortable) level at a $5-$10 game. It may sound like a lot but it will ensure that the player has gained the experience necessary to play well at those stakes.

This is another reason to start at very low (micro) limit on a on-line site and spend lots of time playing many hands to gain experience. This allows a player to learn how to read hands and situations without risking too much money.

One final note, the overall poker bankroll should always be separate from your personal money. If a player starts mixing the two important life events could be compromised.