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Effect of rakeback on bankroll management

 
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Holgininho



Joined: 01 Jan 2007
Posts: 468
Location: Essen

PostPosted: Thu Jul 05, 2007 3:31 pm    Post subject: Effect of rakeback on bankroll management Reply with quote

I can't figure out things like that on my own, so I'll simply ask: What effect should the fact that you get rakeback have on your bankroll management? It seems most of the advice on bankroll management do not take into account rakeback and bonuses. Therefore I'd guess you can be more aggressive with your bankroll, if you receive rakeback - but how much so? What if you get 30%? Or 50%? Or 100%?
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toronexti
53o


Joined: 03 Sep 2004
Posts: 4240

PostPosted: Thu Jul 05, 2007 4:53 pm    Post subject: Reply with quote

well there's 2 ways to go about this.

1) ignore the rakebakc/bonus - this isn't too bad as it forces you to move up limits via winnings rather than promos.

2) include the expected rakeback/bonus in your BR.

So for example:

You have a BR of 2k and expect a bonus/rakeback of $1k

Method 1 would have you playing 3/6 (following a 300BB rule)
Method 2 has you playing 5/10
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PauliF
Actuarial - tested and proven


Joined: 16 Jun 2004
Posts: 2825
Location: London

PostPosted: Thu Jul 05, 2007 5:34 pm    Post subject: Reply with quote

i think that the best way to deal with rakeback is to add it to your earn rate
so when i was playing full time my long term win was about 0.8 bb but with rakeback it was about double that
my bankroll management was then based on conventional wisdon

i had to take money out to pay my bills so that made it easier to deal with
if you are not a pro and/or not taking money out the situation is a bit more murky

uhmmmm i guess if you are not ready to move up an use a more risky strategy based on toro's (2) above you will get hammered and move down

i guess this means that people who are quicker leaners can employ a more aggressive bankroll strategy

i will come back to this when i am not so drunk

peace out
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Holgininho



Joined: 01 Jan 2007
Posts: 468
Location: Essen

PostPosted: Tue Jul 10, 2007 7:47 am    Post subject: Reply with quote

Thank you both for your answers. I won't be aggressive with my BR, because I'm not comfortable playing too high. Also, I'm not sure if my question makes any sense at all. I think basically I want to know how rakeback affects my risk of ruin. I guess the answer is it increases my winrate, so my risk of ruin should be lower. Hm, I think I'm too confused to express clearly what I think/want to know. Rolling Eyes
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