Quote:
Originally Posted by gsiciliano
I have searched on this forum and googled it but found no satisfactory answer. Does anyone know how to apply the Kelly Criterion BR management to cash games?
Read the chapter on that subject from the Mathematics of Poker.
I made a spreadsheet that calculates the cutoff bankroll for deciding between two stakes of cash games as described in the book.
Say you want to decide what bankroll you need to move from NL50 up to NL100 given that you estimate your winrates to be the same at both stakes (not realistical but let's make this assumption to make the example simpler).
So your winrates at both stakes are 4bb/100 (note I don't use PT big bets which would be 2 PTBB/100) and your standard deviation is 110 bbs/100 hands so you just input on the values for NL100 in the first 3 columns and for NL50 in the next 3 columns. If you want to use a half Kelly use comfort factor=2 which is a reasonable value. Use comfort factor=1 for full Kelly but this is very aggressive BRM. In this case the spreadsheet will show you need about 4.5k to move up to NL100 which is about 45 buy-ins. It also shows the risk of ruin to be about 1.8% but the book describes more accurate ways of calculating it. Of course this is very sensitive to your winrates and standard deviation which are difficult values to obtain accurately I think.
https://spreadsheets.google.com/spre...hl=en_US#gid=0
