Traxler!

Is the Traxler Gambit the best thing to play in response to the fried liver attack? My elo is about ~800~ and I heard about the toxic Traxler Gambit but not really sure how good it is in comparison to the Poliero defense.

I've heard it is good. Of course, it is good to see some videos on it and put the pgn in Lichess for you to analyze and try out for yourself

the problem i have with it is that the most testing line is quite forcing and also easy to look up. of course i don't know at what point your opponents will start playing theoretically, but that will come and when it does you will realize you have to throw the whole line out the window.

Thank you for your feedback I will try to only use this line against weaker opponents and stick to the Polerio defense.

You seem to be conflating the two openings, both of which result from the 4.Ng5 attack in the 2 Knights Defense in the Italian Game. 4.Ng5 isn't the Fried Liver Attack, this is:

Conversely, this is the Traxler or Wilkes-Barre:

That said, while the Traxler is fun to play and because of that I play it a lot, the 5.Bxf7 line favors White greatly. 

It is not the best reply, but it is playable against humans. The computer will say that 5. Bxf7 is good for white, but it leads to complicated play. Everyone starts with Karpov vs Beliavsky 1983 at the Soviet team championships, and Anand vs Beliavsky 1991 at Linares.

The Traxler is a great opening with theory containing wonderful sweeping attacks abounding in sacrifices (Perhaps my favorite a theoretic mate found on page 65 of Estrin's Two Knights Defence book give by Black despite being 2 pieces down).

The only problem, like most seriously romantic tosh such as the Muzio, it can be simply avoided and done so advantageously (as others had pointed out).

A very dangerous opening with a lot of risk... I think I might play it from time to time but when I want to be solid I'll play better openings. Thank you all!