Bankroll Management – Part II: SnG and MTT’s

Since poker is a game of variance, it is important to risk as little of your bankroll as possible, while placing yourself in situations that can have positive returns on your investments. Two of the areas that can reap immediate dividends on your bankroll are Single table Sit and Go (or S&G’s) Tournaments, and Multi-Table Tournaments (or MTT’s). This is because the S&G’s and MTT’s generate larger prize pools than cash games do. The trouble with managing your bankroll and playing in S&G’s is that you need to finish in the money to reap a positive return on your investment.

In the case of Single Table S&G’s, when you’re managing your bankroll, it is advised that you spend no more than 5% of your bankroll on your entry fee (not counting the rake for the tournament. In this particular format, a typical pay structure will pay the individuals that finish 1st, 2nd, and 3rd. For example, in a $2 Single table S&G, your investment would typically be a fixed amount of $2.25 ($2 for the buy in, and $.25 for the rake). The true benefit of the Single Table S&G, is that you cannot lose more than you’re buy in, and 33% of the field will receive a positive return on your investment. What this means is, you need to outlast only 6 other players to make money. The typical payout structure of a single table S&G would be, 50% for 1st place, 30% for 2nd place, and 20% for 3rd place. So for a $2 buy in, it would be typical for 1st to receive $9, 2nd, $5.40, and 3rd, $3.60. Since you’re investment is a fixed 11% of the total prize pool in a single table S&G, you’re receiving a positive return any time that you finish in the top 3 places.

For MTT’s and MTT S&G’s, this number changes. The payment structure is much more favorable to the players that finish deep in the tournament. MTT’s can range from 2 tables (18 players) all the way to 10’s of thousands of participants, and it is typical to pay only 10% of the field in an MTT. Since there is greater risk in MTT’s it is advised that you invest no more than 2% of your bankroll as an entry on these types of events. However, a 1st place finish in a large MTT for 2% of your bankroll can triple your total bankroll or more. Like the S&G’s, your buy in is fixed, so an MTT can be a fantastic way for you to make headway in increasing your bankroll by investing very little.

Because you’re playing in larger fields in MTT’s, you’re often going to be placing in the money on average about 10% of the time. Remember, poker is a game of variance, and eventually, the numbers hold true. It would be impossible to think that any individual could consistently win enough hands to beat 90% of the field, 100% of the time. But the really exceptional players find themselves cashing in MTT’s, anywhere between 12% and 14% on average. This is why investing just 2% of your bankroll becomes so critical. In many of the cashes that you will have, you will only be able to cash for the minimum payout, which is often just slightly above what your buy in is. If you don’t run deep into tournaments, you will see a negative impact on your bankroll nearly 86% to 90% of the time, which is why you must keep your buy-in’s low.

Related posts:

1. Bankroll Management – Part I: Cash Games
2. Why is Discipline Important in Bankroll Management?