Quote:
Originally Posted by the_glaive
I am very cautious about moving from lower stakes even with a consistent win rate, because I hate losing my winnings and going backwards.
I wonder if there's a particular level of performance you should be looking for before you gamble on higher stakes. Also, what are the bankroll/budgeting considerations?
Any advice appreciated.
There are some fairly standard rules for what kind of bankroll you should have for different games. It is however, somewhat situation dependent. For example, a lot of players, if poker is their main or only income, will be very conservative, playing a given tournament only if they have 200 or more buy-ins at that level.
It doesn't sound like poker is your source of income, and I don't know what you play. SNG, MTTs and cash games all require different bankrolls.
In general, the numbers usually go something like this:
You have a decent bankroll if:
you play cash games and you have 25 buy-ins
you play SNGs and have 50 BI
you play MTTs and you have 100 BI
That means you're safe where you are. If you want to move up, there are different ways that you can look at. A very conservative player might not move up until he is bankroll for the next level, for example, if he's playing $1 MTTs now, he won't move up to $3 until he has a $300 bankroll.
A different strategy, once you're safe where you are, it to take shots at the next level once in a while, see how it feels and see if you think you're ready to make a move.
For example, let's say that you're playing $1 tournaments, your bankroll is $225 and you want to move up to $3 tournaments. In that case, you could start mixing in a $3 tournament once in a while and see what happens.
A few cautions:
1. First, don't attack the new level too hard. Make sure that only a small percentage of your tournaments are at the higher level.
2. You might get hammered when you move up and that's OK. You might not be ready, or it might be variance. If you lose some money, that's OK. That's why you have a bankroll, to get through the downswings.
3. Don't try to make up your losses. If your bankroll goes from $225 to $205 while you're taking shots, just slow down and get yourself together. Don't panic. Downswings are normal. You've proven that you can make money at $1, just stop taking the shots and grind your bankroll back up playing $1.
When I was playing $5 SNGs on PokerStars I decided to take some shots at $10 and I was killing it, doing much better than I did at $5. Eventually things calmed down and I played about breakeven for a couple months until I saw that FBI logo on my screen. That was Black Friday.
I had a big winning streak when I moved up. That was positive variance. It could have just as easily gone the other way. Don't get too excited with positive variance, don't get too discouraged with negative variance and you'll be fine.