Bankroll Management System for Non-Pros

[damedley]

I've come up with a pretty good bankroll management system. It's designed for guys like me who have regular jobs and like trying to move up levels but want to stay a net winner. It's for cash games. It could be applied to tournaments, but the variance is so much higher that the system might not work as well.

You start at a reasonable-low level, let's say 25c/50c. As long as you stay positive you keep playing at that level. When you want to move up one level you can only buy-in with winnings from the previous level. Once you've played that higher level (say 50c/$1), your total available buy-in is the sum of your net for that level and the provious level (25c/50c). If your net gets below the minimum buy-in you can't play that level any more.

If you're a loser at 25c/50c you have to move down to 10c/25c until you're a net winner at the sum of those two levels - enough to buy in to 25c/50c again.

The basic rule, then, is your maximum buy-in for any given level is your net for that level plus the level directly below it.

This rule keeps you playing at levels where you are either winning or have won a significant amount at the level just below. It's a simple rule that isn't too harsh so I apply it to myself very strictly. It won't keep you from blowing off most of your winnings, but it will keep you from going into the red. It does lets you bank your winnings at lower levels. It will keep you making a steady profit (especially if you don't include bonuses and rakeback into your calculations) while maximizing your opportunities to improve and move up.