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HU SNG Basics: Bankroll Management

Hey guys!

As usual: English is not my mothers tongue & you will probably find tons of terrible mistakes in this post. Please let me know about those that caused you physical pain, so that i can work on that :)

 

Although I am not a genius in HU play, i do have a few games under my belt. I actually learned the most I know about HU-SNGs from "trujm", a very good HU-player who ran "holdemforaliving.com", a free site dedicated solely to HU-SNGs. Unfortunately no-one knows where he's at & the site is offline since august last year. BTW: No, he's not broke. Sharkscope says he has still got >$50k in HU-winnings, playing $220 and lower. I hope that's enough to post something about HU SNGS :)

BRM is pretty much the most important thing that you should know about if you you want to play these games at least semi-serious. If you plan to play HU regularly, be aware of the fact that huge swings (+15 BI/ -15BI) in a day are normal and are not an indicator if you are good or if you suck. Thats why BRM & emotional control/tilting prevention (probably worth to write a separate post) are vital aspects of these games.

To make a long story short: I'd say that you should have something between 40-50 BIs for the stakes that you want to play on a regular basis/ be a regular at. They stakes where 'measurable' amounts of money can be made start at ~$10 imo.

And don't be afraid, the skill level does not differ too much from the micro-stakes games... But let's get back to the topic: Like in pretty much every other area of poker it's not a good idea to take $400-$500 dollars out of your pocket to start off playing for 'measurable money' and leave the lower limits behind unplayed. Your level of play should grow with the limits, if you leave out limits you obv can't achieve this. On the other hand: Let's be honest, the skill-level at the micro games is - even compared to 6max and fullring-sngs - .... quite low. So if you don't want to invest weeks or even month to get to the $10-games, your BRM in the phase of BRB (Bankroll-Building) can be a little bit more progressive. But don't feel forced to do so. If you feel better with sticking to the 40-50 BI-approach, do so. I just wanted to show up an alternative here.  I don't want to just pitch a number into the room, because there is a better alternative imo:

 

BRM for HU SNGs by the Kelly criterion

Although it comes from gambling, there is a lot of value in it, as long as it is used adequately imo. The biggest advantage of the KC in my eyes is, that it is very customizable. I don't want to annoy you with the formula, if you want to look it up you can find it at wikipedia by typing in "Kelly criterion" (btw: I am not very smart, so could someone please tell me how i can post links, lol?!). The KC takes highly individual aspects into consideration, such as

  • the expected ROI: not everyone can expect the same outcome and
  • the tolerated risk of ruin: Some people don't want to deposit at all, some people don't mind.

I made the effort to incorporate the formula into an excel sheet. Link: http://www.fileuploadx.de/918299

This sheet allows two options to use the formula, just fill in the light blue cells and it should spit out a result. i hope it's self-explanatory. If not, just let me know.

GL to all of you!

Doom



 

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Doomsayer excellent post my friend and thank you very much, gives me a outlook on these games although I'm still learning the HU game it does fascinate me. Currently I'm way under rolled for both the sites I play on but I think I still have a huge edge over the players at these limits. With the shortish BR I have a stop loss in place, 2 losses in a row and I stop and do other things such as review my play, play a freeroll MTT anything to take my mind off the HU game.

I must say that it is fantastic of you to lend you experience out to those in need. I can't believe I never played these games a lot sooner. I must say it has taken me a while to find something I truly enjoy. The amount of focus for these games is crazy insane. I can only do 1 table which is fantastic to really get into the thought process of your opponent.

BTW your English is better than most that speak it daily, including mine, very well written post. Thanks so much for taking the time.



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PRESUM3VIL:

Doomsayer excellent post my friend and thank you very much, gives me a outlook on these games although I'm still learning the HU game it does fascinate me. Currently I'm way under rolled for both the sites I play on but I think I still have a huge edge over the players at these limits. With the shortish BR I have a stop loss in place, 2 losses in a row and I stop and do other things such as review my play, play a freeroll MTT anything to take my mind off the HU game.

I must say that it is fantastic of you to lend you experience out to those in need. I can't believe I never played these games a lot sooner. I must say it has taken me a while to find something I truly enjoy. The amount of focus for these games is crazy insane. I can only do 1 table which is fantastic to really get into the thought process of your opponent.

BTW your English is better than most that speak it daily, including mine, very well written post. Thanks so much for taking the time.

thanks alot, presum3vil. im happy that it helped you. the "2 losses = stop"- rule is a great idea to keep things under control. i am not able to play more than 1 table too, so dont worry about that. well, i could of course, but it doesnt seem to work out for me :)

did you download the excel-sheet? did it worked? i was always wondering if there are compatibility-issues between german and english office versions.



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Yes I d/l it but not so sure what I'm to do with it. Pretty cool spread sheet Doomsayer thanks I get it now just enter you figures into the blue blocks and the data changes.

Much appreciated.



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PRESUM3VIL:

Yes I d/l it but not so sure what I'm to do with it. Pretty cool spread sheet Doomsayer thanks I get it now just enter you figures into the blue blocks and the data changes.

Much appreciated.

exactly :)

good to hear it works



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thanks for the post.  I downloaded the form but it has a bit of a WOW factor.  Might take a look at it later.  Can you explain the light blue fields, maybe that would help.

Once again thanks for the help.



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the form is quite simple to use:

just fill in the light blue cells and it should spit out the results.

standart deviation:

if you play a $10 game, you have to pay $10,50 to get in = $10 for the pricepool + $0,5 rake. if you win, you win $9,5 net.

if you loose, you loose $10,5. the relation

"winnings in case of victory" devided by "losses in case of loosing"

is the standart deviation. this is important because if you play 10000 games and win 50% you are actually loosing due to the rake you pay.

 

expected ROI [eROI]:

Which return on investment (ROI) do you expect (in %)?

its important to keep the data realistic, if you dont, the whole sheet is worthless... a realistic ROI for an experienced player on his 'bread and butter'-level for example is ~10%, on hut runs higher, running bad lower. 15% is pretty sick in the long run. although if you played the $50 games with an ROI of 10%, 20% should be pretty easy for you to achieve at the $10 games. if you step up a level, the opposite is realistic.

 

tolerated risk of ruin:

which chance of going broke is acceptable for you? 5%, 1% or <1%.

this is a model. of course everyone with a brain/not on aggro-tilt would step down a limit if he's loosing. so this is theory but important for the formula, because it just needs a number in place: the kellyfactor. type in 1 as your kellyfactor if a 5% chance of going broke is acceptable for you and so on...

 

damn, this post became pretty long. seems i have disposition to ramble...

 



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Thanks will really come in handy for those looking to stay within their BR and limits to be played.



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the spreadsheet is really cool, It's nice to have someone who has alot of experience in hu sngs to teach us the basics



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Wow, lots of value in this thread.  Great post!

I can add a tiny bit..  For a great layman's introduction to the Kelly Criterion there's a book called Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street.  I was first introduced to this book by reading an article by Phil "Unabomber" Laak, called Broke one time and never again.  The book discusses the math and economics behind the theory, and shows how top gamblers, stock traders and fund managers have used the concept to maximize their wealth.

Also, @Doomsayer -- to post a link: the secret is to highlight the text that you want to become a link, then the little chain link icon will become available.  Paste in the Link URL (http address) and add a Title for the search engines to see (usually the same as the human-readable link text).

Btw, your English is much better than most native English-speakers that I interact with.  Disclaimer is a hidden brag maybe? =)



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Thank you for a really great thread a lot of usefull information here. I have downloaded the spread sheet and works well