Poker Gambling Financial Management Guide – Financial management in online poker gambling games must of course be understood and mastered by members and poker gambling players.
The right bankroll size to play poker with depends a lot on your goals as a poker player. Everyone plays for different reasons. Some people play for pure entertainment. Some people play because they like competition and challenges. Others treat poker as a good source of a second bit of income. And few can afford to treat download idn poker as a full-time job.
In some forms of gambling, there is an optimal pattern of betting to produce a return on your investment. This calculation is known as the Kelly Criterion and it is a proven mathematical formula. The premise of the formula is as follows:
Say you have $100. Someone offers you a bet on a fair coin flip. You can bet the amount you want, and your opponent will make this bet with you however many times you want. If you win the fold, they pay you twice whatever you bet. Obviously, this is a big bet for you. 50% (.5) of the time you will win (+) twice your bet (2x). 50% of the time you will lose (5.) (-) your bet (x). 0.5 (2x) -. 5(x) = 5x.. So, on average, you win .5x, or 50% of whatever you bet. Since this bet is profitable, you obviously want to bet as much as you can. However, if you go bankrupt, you will have no more money to bet, and you lose the value of all future bets.
The Kelly Criterion is determining what percentage of your total money you should bet to give the fastest growth in your investment.
The correct formula is: f * = (bp-q) / (b)
f * is a fraction of the current bankroll for bets;
b is the odds received on the bet;
p is the probability of winning;
q is the probability of losing, which is 1 p .
For even money bets where the result is the same as your bet, this formula can be simplified even further, simply as: f * = 2p-1. You can also see as f * = (Your Edge) / (Your Odds). Remember, f* is the percentage of your money you have to bet.
Unfortunately, in most cases, poker is a much more complex game and the outcome depends on far more than just the 2 possible outcomes. One exception would be game heads. In particular, heads up tournaments. Since that is what we can prove mathematically, that’s what we’re going to focus on. After playing a few hundred head sit and go and tracking your results, or checking websites like to check them, you should have an idea of what % of the game you won. You can also learn about tracking manually with software like excel. Once you have an idea of what percentage of games you win, you can determine the correct buy-in you should play to maximize your winnings.
If you win 55% of your play then, f * = 2 (0.55) – 1 = 1.1-1 = 0.1 or 10%
If you win 55% of your game, then you have a 10% edge, and must bet 10% of your bankroll. Note, that if you win less than 50% of your game, you must bet 0% of your bankroll, and not play. In fact, since online poker sites charge a small fee to play, you will actually have to win about 51% better than break even. Also be aware that as you move to higher limits, you will face tough opponents and your win percentage may drop. For this reason, you should usually round down a few percentage points before moving on the boundary.