View Single Post
  #2  
Old 09-21-2007, 01:33 PM
RustyBrooks RustyBrooks is offline
Senior Member
 
Join Date: Feb 2006
Location: Austin, TX
Posts: 1,380
Default Re: Bankroll for Razz.

I feel about the same for all limit games. The actual number you want to have depends on how comfortable you are with the risk of going bankrupt, and what your edge is in the games. The standard suggestions usually are using this formula with a particular set of assumptions. You can tailr this for yourself. Because of the rake, you actually can need more at lower limits than at higher limits (because your win rate can be lower)

The bankroll formula is:
-(SD*SD)/(WR*2)ln(risk of ruin)
SD = standard deviation - most player run at about SD=15bb/100
WR = win rate
risk of ruin = chances of going broke (general rule is 1% for pros, 5% for amateurs)
So for a 5% ROR, 15bb/100 SD, you get 170bb if you can win 2bb/100, or 340bb if you can win at 1bb/100. Until you know your win rate at a level I wouldn't assume more than 2bb/100. If your standard deviation is higher that's a pretty big deal - note that quantity is squared - lowering your SD is a better move than increasing your win rate. In fact, in Sklansky on Poker he sort of recommends playing bigger games than your bankroll sometimes indicates you can play, but playing a very low standard deviation game and giving up some bb/hour. In razz, low SD = fold whenever in doubt

Note that for pros, the 1% mark means you need a lot of BB, between 260bb and 520bb for the same win rate as at 1%. And if you're willing to take a slightly higher risk, say 10%, you can squeak by with 130-260bb. Note that as bb goes down linearly, ROR goes up exponentially, because of the ln(ROR) factor. Maybe I'll post some graphs later.

I think it's good for people to know where these benchmarks come from, it's not a one-size-fits-all thing, it really depends on your style, ability, tolerance for loss, etc. It's a shame that so few poker books even mention this gem of a formula.

I personally like 300bb because I have the money and I'm in no hurry to move up. When I barely have 300bb for a level I stick to that level. When I have 300bb for level 1 and an additional, say, 50bb for level 2 I'll sometimes take shots at level 2, where if I lose 50bb, I run back to level 1. So if I was playing 1/2 and wanted to take occaisonal shots at 2/4 I'd need $600 + $200 = $800. Between 2/4 and 3/6 it's easier because that's $1200 + $300 = $1500.

BTW you pawned me bad in a hand last night... remember that? "Ahahahahahah you paired your ace" - I played that hand pretty bad.
Reply With Quote