I have cracked the 50,000 barrier in my FTP Fake Cake Challenge and that brings up a topic that I've been meaning to blog about, how scaling affects your bankroll growth.
When I started I fumbled around on the tables and knocked down my original allotment of 1000 fake bucks to 700-800. I know it's fake but I was not going to reload. I was going to protect that the same way you guys are with your Cake money. I played small ball to edge my roll up and when I felt comfortable to dip my foot in, I took on the 10/20 tables because I felt that the 7cs hi/lo and Razz tables gave me the best shot to run up my roll. As my older blog entries suggested, I was rationing out every ante and bring in to keep my risk minimized. Since then my roll has grown 50 times as large as it originally was. That same 200 that I was worried about being down is now a value bet on the end of a hand.
The problem that I'm going to run into soon is how much harder it is to keep my growth going. 10/20 tables were very soft. 100/200 less so. I imagine higher tables are going to be more challenging...assuming I can find one. They offer 500/1000 tables but there are fewer of them and empty at times because there aren't enough players so I can't just jump up my stakes and expect to keep growing the roll like I have been. Currently I open four tables and pull down about $4000 every 100 hands which takes about 45 minutes to run. That's averaging $40 per hand that I play, mucked or not. If I keep playing here I can pull down a few K a session but then my growth is going to slow down. I can open up more tables maybe but I'm already pretty much at every open table already.
This is the same problem that mutual funds run into. When the mutual fund is small they can find some small caps, invest in them and get stellar returns. But as the fund grows larger, buying a $20 million dollar company that grows 10x in value over a couple years is not going to have the same impact for a $5 billion fund as it would on a $200 million fund. The amount of money coming in may be the same but the percentage growth drops off significantly. A mutual fund can buy bigger companies but big companies don't grow as fast as small ones.
Fortunately for you Cakers there are a lot more tables with a more gradual jumps between stakes to allow for a smooth and gradual increase in bankroll but depending on how long you guys go with the challenge, I wanted to give you a glimpse into the future.