Not sure what to do when I get this option... Is it a matter of reducing variance?
We should cashout when equity< 50% and vice versa?
it doesn't matter. it's like trying to come up with a strategy to exploit roulette, in the end you're just paying 1% long term whenever you take that option.
I absolutely HATE that option !
I agree with Tomaloc, it doesn't matter much what you do, equity will make up in de longrun, so you just pay more rake.
But that is not what I hate about it.
The problem is, is that it destroys money of the table. For instance, when two people go all-in and the winner "cashed-out", the money he should have gotten is taken away from the table. It's often the fish with the least amount of equity that cashes out so the biggest chunk of the pot is taken away.
It happens so often that I'm all-in vs a fish, with 75% or more equity. He cashes-out but wins OTR. His stack is not doubled like normal but is actually ~half of what it was before the hand and there is no way I can win the money back because it's simple not there anymore. Ergo, I HATE CASH OUT !
Cash out doesn't really take that much money from the table, as sometimes it adds money to the table.
I would say that the key is in how variance affects you. If you have mental game issues when you lose a lot, then cashout is good option. If you are super-zen who doesn't have emotions, don't use it.