How to manage sports betting bankroll

Online sports betting tips on how to manage your betting bankroll. Bettor should manage and protect their investment bankroll. Betting money management is all about how to maximise the identified value while minimising risk. In other words: With these tips, you will maximise your bankroll & all your future wagers.

For both beginners as well as professionals, a punter’s bankroll is the fuel needed to keep the ball rolling.

Without a doubt, this is easier said than done. The thrill of betting in itself can easily cloud your betting decisions and ultimately, your bankroll.

Many bettors have the ability to pinpoint the exponential value in a sports betting market, be it through fine-tuned insight or statistical models that calculate the possibility of an outcome.

If you’re not yet familiar with the basics of online sports betting, go ahead and get started with this beginner’s guide.

The second trait a bettor should maintain is to manage and protect their investment bankroll. Betting money management is all about how to maximise the identified value while minimising risk. In other words:

How much do you invest in that bet to get the most value without slicing too much of your bankroll?

Understanding how to manage your bankroll is key to your future betting success.

How To Manage Your Betting Bankroll

Bet Sensibly

Before jumping into sports bankroll management and which strategies are deemed best, it’s essential to touch base on how and how much you’re betting.

Bet on sports you follow, not simply because it is the latest hype. The more knowledgeable you are about the sport you’re betting on, the more likely you will make better decisions. This also refers to reading up on the selecting right bookmaker and sportsbook for you.

We know that at times, calculating numbers on numbers on numbers might be challenging. Employing the right bankroll management strategies can be less of a headache when implementing tools like betting calculators that will also provide you with more accurate forecasts.

Remember, your bankroll is your investment.

Consistent Bankroll Staking

A good starting point is to be consistent with the percentage of your betting bankroll with each wager. You can set a fixed amount for each wager placed, however despite its simplicity, it's not recommended.

Let’s say you bet €5 each time from your €100 bankroll. That amounts to 5% of your initial bankroll, which is relatively a safe measure. However, this element of consistency might present itself as a limitation when your betting bankroll increases or decreases as you are constantly calculating the said 5% on your initial and not your current bankroll.

A small adjustment to this would be to maintain a consistent percentage that is relative to your current bankroll amount. This strategy acts as somewhat of a safety net whereby protecting you from losing your entire bankroll. So, the wager diminishes at a proportional rate as your bankroll diminishes.

That being said, this method assumes equal value and odds. In reality, even if you place the same wager only on favourites, it is unlikely to get an identical value in each instance. Thus, consistent bankroll staking alone lacks value as a key driver in a successful betting money management strategy.

Consider The Odds

Further to the previous approach, here bettors take the presented odds into account when placing a bet. For instance, if as a standard unit, you are betting 6% of a €1000 bankroll, you’ll be placing a wager of €60. Thus, if betting on let’s say, a 7.00 outsider, that unit becomes €10. This is how it can be calculated:

Stake = (Bankroll * Percentage Of Bankroll To Bet) / (Decimal odds -1)

Stake = (€1000* 0.06)/ (7-1)

Stake = €60/6

Stake = €10

This might work fine for betting on outsiders, however, should you wish to bet on a short priced favourite, let’s say a 1.05, you might easily end up losing your entire bankroll.

Similar to the first strategy, simply considering the odds still fails to recognise the value present of a betting opportunity.

How To Manage Your Betting Bankroll

The Kelly Criterion

Dubbed as one of the best betting bankroll management strategies out there; the Kelly Criterion.

This formula determines the proportion of your investment to bet based on an outcome whose odds are more favourable than expected. The Kelly has proven to earn better results in the long run.

Not only is this a low-risk tactic, but it is, in fact, the best possible strategy to maximise your bankroll as a punter.

Unlike other strategies, this criterion takes two things into account. Firstly the probability of an outcome and secondly the value in relation to that probability, also known as an overlay. Basically, an overlay is calculated as so:

Overlay = (probability * odds) - 1

This determines the percentage value for a bet.

For example, Team A and Team B are playing against each other, with Team A having odds at 2.70 to win and an estimated probability of winning at 40%. Does this represent a value bet?

Overlay = (0.4* 2.70) - 1

Overlay = 1.08 - 1

Overlay = 0.08

Thus, this bet offers a value of 8%.

As many professional punters would suggest, only ever place a bet when there is value.

There are a number of versions in which The Kelly operates, namely the Full Kelly and the Fractional Kelly, the latter being a more conservative approach that involves a smaller fraction of your betting bankroll.

Overall, punters tend to take the safer route and opt for the Fractional Kelly, commonly using the Half Kelly or any other fraction that suffices.

Overall, punters tend to take the safer route and opt for the Fractional Kelly, commonly using the Half Kelly or any other fraction that suffices.

Adjusting The Kelly

One limitation that arises from The Kelly method when the issue of multiple wagers is involved. This is mainly because the recommended percentage of bankroll can easily exceed your total betting bankroll, which would not only be impossible but also unsafe since you can essentially lose your entire investment.

One way of amending this error would be to adjust the percentages proportionally by 100% of your bankroll thereby betting your entire bankroll, which needless to say, is unsafe.

In turn, most punters use the fractional method as a solution. This way, regardless of how many bets you place in a day, the total recommended percentage would unlikely surpass 100% of your bankroll.

Especially when placing multiple bets, it might be ideal to set caps on how much you will be collectively betting or betting each day as it’s sometimes hard to resist so many tempting wagers.

In Closing

While many sports betting bankroll management strategies are at punters’ disposal, it’s good to get familiar with the different bet types in online sports betting so as to align your strategy accordingly.

We suggest opting for a fractional Kelly method as it takes the largest amount of betting elements into account, offering not only a more accurate calculation but a better understanding of your bankroll inflows and outflows.

Whichever approach you decide to employ, our best advice is to do your homework and be patient. You never know you might get lucky!

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