Originally Posted by widowmaker89
Money on the table is certainly part of your BR and you should include it. This is also a risk aversion/tilt question not a what should I do question and I dont think its pointless at all, although a few months ago I may have agreed its pointless, after looking deeper into my game I disagree.
To be honest I am probably folding this. If i am at the beginning of a session I will give up the small amount of equity to not go on tilt as the equity loss is pretty small. I am also not sitting with 10% at a table for this very reason. Its easy to say this is an insta call but tilt is a bigger leak of mine than the perceived loss when we are talking about that much money.
This is basically my friend's line. I agree that the money on the table needs to factored into bankroll management. I shouldn't play $400 deep with a $1000 bankroll, even if I only bought in for $50. I should cash because playing with that $400 is more variance than I can reasonably tolerate. That money is better in my bankroll where I can grind out my edge.
I think 5% is a good baseline for what you should bring to the table, but we shouldn't be too afraid to go up to 10% for a short period of time if our bankroll is replenishible (that is, if we have income sources other than poker).
It is more a risk aversion question. I also asked my friend if he'd rather have $50 or a 50/50 shot at $100. He of course took the $50, as I expected. Up to a certain point we shouldn't care (because we ideally are being risk neutral), but if someone offered us $2million or a 50/50 shot at $5million we'd be stupid not to take the $2million.
Likewise, we're going to buy insurance on our car, house, and jewelry, because we can't handle the variance associated with losing all that in one disaster. Auto insurance is actually -EV (that's why insurance companies stay in business), but we need it anyway to protect ourselves from a huge loss.
And also likewise, when we are properly bankrolled we should be looking to lay insurance against those players who aren't properly bankrolled for the stake, or who just can't handle the swings mentally.
Villain is basically laying us 1.2:1 on a coin toss.