How to do betting bankroll management? 3 Proven Methods
Not having bankroll management can lead a bettor to lose a lot of money.
But this can easily be avoided! ☝️
Everything will depend on 2 factors:
- If you have minimal management of your money
- What method do you use to manage your bankroll
In this article we will show you 3 proven methods to manage your betting money well!
But is that enough to prevent damage?
No!
So we will give simple tips at the end of the article, both for those who do Trading on Betfair as for those who bet on Sportsbook.
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What is banking management?
Starting with the most basic, What is the bettor's bankroll?
The Bankroll is the total amount a bettor has available to bet.
Banking management means manage this value in order not to lose it completely in bets, staying in the prejudice .
There are many methods for this. Not all, however, are effective.
An example of this is Martingale. In theory it works well, but in practice not so much.
So, initially, let's talk about the ideal minimum bankroll for betting and the basic principles of managing a bankroll.
Subsequently, we will give you the solution to manage your bets well, presenting 3 good methods:
- Fixed Value
- Percentage Value
- Kelly Criterion
What is the Ideal minimum bankroll to bet?
You will find on the internet several testimonials from bettors talking about the initial value of your banks .
Keep in mind, however, that every person has a situation. Some may have more money, while others not so much.
If your question is: Can I start small and double the Bankroll after a while?
You can, you should and you probably will!
The success of banking is in the way you manage it than in the initial amount.
In any case, let's clarify what factors interfere with this decision.
1. Financial reality of the bettor
We can't be delusional here. Make the calculations according to your monthly income before you set aside any amount for the bets.
That's really important. Of course there are those who can afford more than $ 1,000.00 every month,but it is not common in New Zealand.
Most people earn a minimum wage or little else. There are bills to pay, as well as spending on food and other necessities.
In this scenario, there is very likely little left to devote to betting. Which has no problem at all!
If you want to start investing in this market, you need to do it safely. The idea is to make a profit, not make a loss!
Never spend money that you will need!
A good rule of thumb will be to set aside 10% of your earnings to increase your bankroll.
2. Earnings goals and targets
There is no such thing as bet three or four times in random events simply to see on what gives.
You need to have a goal !
Even if you want to bet just for fun, remember: it's your money that's at stake.
The verb here is not to spend, but to invest.
And like any good investment, it is important that there are goals to be met.
In this sense, think about how much you want to get back in 1 month, in 6 months and in 1 year.
Profits are proportional to the initial bankroll. So who has a bankroll of $ 5,000. 00 will profit more in a month than who has one of $ 500?
Not necessarily. The higher the amount available to bet, the higher the amount available to bet on each stake . But this in theory.
Who it has $ 5,000.00 you can lose them in a month.
Already who got $ 500 you can multiply them and get to $ 5,000.00.
The important thing is to set goals. If you want to get $ 100 return at the end of 30 days of betting, you can easily start with a bankroll of $ 100.
This would mean that you doubled your bankroll in a month! An excellent goal to accomplish.
3. Amount invested in each bet
Finally, define how much you want to invest in each bet. We stress that there needs to be consistency here.
No betting $ 20 one day and $ 70 the next! This is almost certain to go breaking the bank quickly.
This is a typical mistake of those who do not have a betting strategy and those who do not look for value bets .
It is not necessary to bet every day or even every week.
You should only bet when you find value in the events.
Are there Dollar (NZD) chances of winnings? Can I get high profits? So, it's worth betting!
But even when the stakes are worth it, you need to have one stake coherent.
You can work with a amount determined or with a percentage of bankroll . As long as you know how to respond to its variations.
What value should the initial bankroll have?
The optimal minimum bankroll must satisfactorily meet the factors explained above:
-
Your financial reality
-
Your goals as a bettor
-
How much you want to invest in each bet
Respecting the financial reality of most New Zealanders today, we would say that an interesting initial banking should be of at least $ 100 .
Why?
This value currently corresponds to just over 10% of the New Zealand minimum wage . Some transfer it to a savings account.
Let's remember that several experts point out that saving 10% of your income every month is a way to guarantee a good old age.
Today a savings yields around 0.5% per month.
That is: if you deposit $ 100, it will yield after 30 days only 50 cents.
But let's say you want invest that $ 100 in sports betting . It is already decided that this will be your starting bankroll.
The next step is to set your goal. After setting up a plan, you want to double the amount after a month. Soon: $ 200 .
Just don't think that you will get rich overnight with sports betting...
As a safety measure, of course, you have decided to bet 10% of your bankroll. We thus have a stake from $ 10 .
The event chosen was Espanyol vs. Getafe, for LaLiga Santander.
- Getafe, playing away from home, have 20 points in the competition. It is in 7th place
- Espanyol is second last with 8 points.
Analyzing the odds the event on the website of BetWay , you think that, in fact, Getafe have more chances to win than odd demonstrates.
Therefore, the odd it should be smaller. What configures a Value Bet!
Decided: you bet $ 10 on Getafe winning . To their delight, the team in fact wins the encounter.
We therefore have:
$ 10 x 2.80 = $ 28.80 earnings and $ 18.80 profit
In just one bet you won $ 18.30 more than you would in a month with the $ 100 sitting in savings.
We understand if you tell us that $ 100 is a lot. All right!
Try starting with $ 50.
Stick to the 10% bankroll tactic. Even betting $ 5 on Getafe winning, you would have a win of $ 14, for a total profit of $ 9.
Of course, our guesses will not always be accurate. Eventually, every bettor loses, and this is something you need to internalize.
The important thing is that after defining your initial banking , maintain a smart betting strategy.
One of them, as seen above, is to focus on value bets. But the most important is the banking management .
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Banking management principles
The idea behind bankroll management is quite simple in theory. You have a certain starting amount, which can be $50, $100 or even more.
Managing the Bankroll means betting a correct amount according to the value of the Bankroll. The goal is to make it profitable, taking as little risk as possible.
In other words: it is to manage the risk of each bet, betting only what is necessary so that, if you win, you have a satisfactory profit. If you lose, don't lose too much at once.
The worst thing you can do in this sense is to risk everything in one bet, because if it goes wrong, you lose everything – and bad luck happens...
There are several management methods for this. Many, however, are not effective or reliable.
This is the case with Martingale.
Myth Of The Martingale
We cannot consider Martingale a banking management method , despite the fact that he has long been used as a strategy for this.
This explains why in practice Martingale is unreliable. It can therefore, lead quickly to bankroll collapse .
The general idea is that an event in a game is going to happen because it hasn't happened in a while.
But let's go to a classic example of Kingdom game for you to understand.
Your bankroll is $50 . You bet $5 that the little ball will fall into the red. It falls, however, into the black. Result: loss of $5 .
The principles of Martingale they dictate that you must now bet twice as much as you did before to try to recover the loss.
Again the guess is in the little ball falling into the red. She falls into the black, and now the total loss is $15 . The bank has gone down to $35 .
Can you see the danger of Martingale?
If you keep doubling your bet, you can bankrupt your bankroll by more 2 rounds .
Martingale relies heavily on luck to function.
So it's not by far the best method to run a bank.
You can think: "Oh, boy... but sometime I'll have to get it right!”
This may be true, but it is one of the reasons many bookmakers or casinos limit the maximum amount that can be placed on one bet!
In addition, at Kingdom past results do not influence future results. It is a mistake to think that in the next round the result will be red, just because in the previous rounds it always came out black!
So let's look at some of the best methods for you to manage your banking effectively.
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Fixed value method
As we saw above, Martingale is not the most reliable method of bankroll management.
We can't rely on luck alone to manage our money.
An interesting strategy is set a single amount for all your bets . This is what the method known as Fixed Value .
The fixed value is limited and restricted , but it's a good way for you to understand well how a structured banking management .
This method consists of always betting the same amount on all bets.
So that you understand well, let's say your bankroll is $60 . You will always bet $3 , respecting the idea of fixed value.
Keep in mind that this represents 5% of your bankroll.
If you bet that $3 on a odd from 2.00 and win, you will get $6 . The bank now has $63 .
Even if the amount has increased, on the next bet you will continue to bet $ 3 Dollar (NZD). This consistency is the strategy behind fixed value.
Fixed value: advantages and disadvantages
You know how much you're going to spend
No Negative Surprises
It is easy to implement
Very Rigid Method
Does not take into account fluctuations
It's Riskier
It is a fact that making bets always with the same value makes it easier to manage the Bankroll. You know the amount you have available and you always know what you are going to spend.
The rigidity of the method in this regard is a beautiful plus.
This is always a positive point, because when it is "time to stop", if that time comes on a bad day, you not totally lost your bankroll!
And here we enter the other side of the fixed amount: he does not consider the fluctuations of banking .
If you start with a bankroll of $60 and do 5 bets in a row of $3 in odds from 2.00 all winners, of course that's a good thing.
After all, you get $ 90! But now $ 3 represents 3.3% of your $ 90 bankroll, not 5% anymore.
But what if you do 5 bets in a row and they are lose ?
You have to think that as the value of the Bankroll decreases, the amount wagered needs to follow this fluctuation. Otherwise, you won't be managing it well.
In this regard, the fixed amount is not the most suitable.
You need to have a banking management that always respects your fluctuations.
To give you an idea of how risky it is to use the fixed amount, the more experienced bettors bet only 2% to 5% from the bank.
If you notice that what you are betting passes a lot of this, you need to rethink this method and even take a break to avoid a bad run .
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Percentage value method
Percentage value is a safer and more flexible method of managing banking. Instead of using lump sums, you use percentages .
As we said above, high rollers bet with a safe margin. She spins between 3% to 5% of total bankroll , being above that something very risky.
Keep in mind that high rollers operate with very large banks. For smaller banks the percentage may be higher.
In this method, you may or may not use the same percentage on all bets.
The idea is to respect the bank. Using always low percentages you can have security and avoid disastrous losses.
This tactic still allows the bettor to take risks from time to time.
In these cases it is worth going up to 10% the bet amount when you notice a Value Bet in which you have a lot of confidence!
Keep in mind that the percentage should always be related to the total bankroll amount.
The 5% do not represent the same impact on a betting budget of $600 in relation to one of $100 .
Percentage value: advantages and disadvantages
Greater Financial Control
Dynamic Method
Takes into account fluctuations
Bad for elevated stalls
Necessary To Vary Percentages
There is no foolproof banking management method. We can say that the percentage value, however, it is very effective .
Regarding the fixed value, this strategy is more dynamic , because in addition to the bet amount vary according to the evolution of the Bankroll you don't always have to focus on one percentage.
The idea is just the opposite: choose the percentage according to the confidence you have in the bet.
If your bankroll is $100 and you noticed a Value Bet , bet 10% of the amount . In the case would be $10 .
If you win, great! But if you lose, it will be advisable to lower the percentage bet on the next bet. It's a banking restraint measure.
The advantage is that in the next game done, reducing the percentage by 5% , you reduce the risk of making your situation worse.
This dynamism, however, can be a negative point of this method. Especially if your bankroll is higher and the percentage bet as well.
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Simple Kelly Criterion method
The Kelly Criterion is currently one of the most sophisticated methods of banking management.
It was developed by the physicist-mathematician John Kelly , in 1956. Kelly's idea is quite simple and takes into account two factors:
- Probability of an outcome occurring (calculated by the bettor)
- The bookmaker's odds for that result
The idea is to make a very simple calculation to reach the percentage of the Bankroll that we must bet!
The formula used for this is:
Kelly = (BP-Q) / B
B = (House Odd) - 1
P = probability of the outcome happening (according to your opinion)
Q = probability that the result will not happen, i.e. 1 – P
Let's assume that, having done our analysis, we believe Tottenham's chance of winning is 33% .
With that information in hand, let's go to Kelly's discretion:
Kelly Criterion = (2.87 – 1 x 0,34 – 0,66) / (2,87 -1) = – 0,0129
The above result was negative , and you must be wondering if there is something wrong with the calculation. No, there isn't.
This is because according to Kelly's criterion it does not pay to bet on this result with this odd victory for Tottenham.
Why?
Because the odd that the House placed Tottenham's win (2.87) means the home side think the probability of the London side winning is 34,8% .
If the house gives a chance of victory to Tottenham greater than what we think is true, then it does not pay to bet on this result. It is not a Value Bet !
But let's take an example when the criterion is positive.
Let's say you want to bet on the Gaucho classic Grêmio vs. Inter.
| Guild | Draw | Interregional | |
| Odd | 1,71 | 3,25 | 3,65 |
| Probity | 58,5% | 30,8% | 27,4% |
Since you know the current statistics of the clubs, you assume that in fact the Grêmio has a 65% chance of winning . Kelly tells us that:
- B: 1,71 – 1 = 0,71
- P: 0,65
- Q: 1 – 0,65 = 0,35
That is:
(0.71 x 0.65 – 0.35) / 0.71 = 15.7%
To make your life easier, you can use the calculator below – in this case the House odd is 1,71 and the probability of real, calculated by the bettor, is 65% :
Following the example above, Kelly's Criterion tells us that you should bet 15,7% from your bankroll at victory of the Guild .
This is only possible taking into account the odd of the house and the real probability of the event happening.
Here we have identified a small problem of the method: it may happen that the method suggests betting very high percentages from your bank.
It is up to the judgment of the bettor to decide whether it is worth placing the bet or not. It is customary in the Kelly criterion to establish a maximum percentage ceiling.
Kelly Criterion: advantages and disadvantages
Management based on Odds
More Organized Method
Indicates whether it is worth betting or not
Identifies value bets
Works with high percentages
Very Complex Method
One of the main advantages of the Kelly Criterion is the management power that he gives to the bettor.
We are not talking about value or percentage bet. Management is based on the odds of a certain event.
Kelly's criterion is advantageous because, using one's own house data and our estimate, we can check whether it is worth betting or not.
That is why this method is one of the most connected to the calculation of expected value and at value bets .
You know how much to bet and even when to bet or not.
This is only possible if you know how to identify the odds Dollar (NZD) of an event happening.
The main disadvantage of the Kelly Criterion is that it sometimes suggests betting very high percentages of your bankroll.
Remember that 5% banking is a safe percentage. But in case you feel confident in a result, we suggest that the maximum is 15% .
Also, some bettors may find Kelly's calculation tricky. If this is your case, the calculator above will help you a lot.
Banking Management and EV+
At the beginning of the article we promised a strategy tip, and it is related to the EV+ or the already mentioned positive expected value.
First of all there are 3 types of bettors:
- What has neither bank management nor strategy
- What has banking management, but no strategy
- And the one who both manages the Bankroll well, and has a betting plan
That is: even a person with a good command of banking must draw up a long-term planning seeking EV+. Otherwise, sooner or later, it will end in loss.
For this reason efficient banking management must be combined with the search for value bets!
When you have a behavior that seeks EV+, it even oscillates from time to time, but in the end it maintains good gains.
Banking Management in Sports Trading
The best sports traders reap 3 pillars to success on your bets:
- Championship and event analysis
- Definition of betting strategies and techniques
- Efficient banking management
Of course, these pillars are suitable for any type of BET. But in Trading, which is more complex, they are even more important. Especially the last one!
In addition to choosing a good banking management method a trader needs to handle their investments in a professional manner. What does it mean to have:
- Organization: with one of the above methods you know how much money to set aside for each trade. Have a budget and follow it consistently
- Calm: in trading you earn little by little, so take it easy when trading on sites like Betfair. Don't risk more than you can afford to lose
- Caution: don't invest if you can't find EV+. Calculating whether the risk/reward is worth it is one way to keep the Bankroll balanced
- Control: lost? Don't try to recover everything in one game. Control the emotional so as not to put the Bankroll at risk when entering and leaving in a disorganized way of betting
- Spreadsheet: an Excel spreadsheet for Trading is essential. Record all the games you enter what were the results you got. Review mistakes to stay on track.
Taking these 5 factors into account you are more prepared to bet on betting exchanges like Betfair , as it enters with greater dominance over its banking.
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Conclusion: Which Method To Use?
Banking management methods exist in spades out there. And some are invariably more effective than others.
Even so, some bettors feel more comfortable with a certain technique. Even if this is not always the best.
For our part, we consider the simple Kelly Criterion one of the most advantageous methods for managing banking.
It indicates the percentage of bankroll which should bet on an event and indicates in some cases that you should not place a bet.
This is very evident in the example above. Which is fantastic, as you have a sense of when it's not worth making an investment!
More experienced bettors, such as Traders, often use more than one bankroll management method at the same time.
So don't feel stuck to a single strategy. Managing your money effectively may require more than one management technique.
The important thing is that you feel safe and that you can effectively control your bets.
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Frequently Asked Questions
📊Why do betting bank management?
To take calculated risks and minimize losses on your bets. It is a responsible way of betting and encouraged by all trusted bookmakers such as Bet365 .
💰What are the main methods of banking management?
These are: Martingale, fixed value, percentage value and Kelly Criterion. The most important thing is to find what works best for your bettor profile.
🗃️ How to make an efficient banking management?
The best way is to handle your bets in a professional manner. Be organized, exercise caution and record everything in a spreadsheet, especially if you are going to focus on sports trading. By the way, the best site for this type of bet is Betfair !
💲 How much should I bet from the Bankroll?
Betting 10% of your bankroll is a safe amount to manage your money.
📈 How to increase bankroll?
This will depend on several factors, such as your financial reality, earnings objectives, amount invested in each bet and the banking management method chosen by you.
User reviews
Great text. Thanks
On average how many entries should I make per day? I get dozens of guesses a day. What is the ideal number of bets for a small bankroll?
Hey, John!
The important thing is not how many entries to make per day, but the quality of the entries.
Let's say your bankroll, for example, is $50 okay? You can bet 10% of the Bankroll, which is a high percentage and amounts to $5. But this only pays off if it is in an event with odds between 1.30 and 2.00 and that you know the variance is low.
Example: a 1x2 market in which we have odds of 2.00, 3.75 and 4.35 . We know that the chances of the result with an odd of 2.00 actually occurring is higher, since the other odds have a good value distance from it. Therefore, it is worth betting $5 (10% of the Bankroll) on this odd of 2.00, as the probability of you winning the bet it is relatively quiet.
On the other hand, betting 10% of a bankroll of $50 on an odd of 2.00 in 1X2, where the other odds are 3.00 (draw) and 2.50 (victory of the other team), we consider dangerous. The variance tends to be greater in this case, since it is a disputed event. The favorite is not so "favorite". The chances of the game changing and everything turning around is quite high, depending on the teams and the championship.
We hope we have clarified your doubt!
Team Bet Cool
In case, if I am going to bet on 3 games using the percentage amount, I should use 3-5% on the 3 bets added up or on.each? 5% or 5%+5%+5%?
Abs
Hi, James!
You will use 3 to 5% on each bet, and so the percentage value is variable. Let's say You Bet 5% of a $50 bankroll, which would give you $2.50 wagered. If you lose, you get $47.50, right? On the next bet you can bet another 5%, which will give something like $2.37. Or you can reduce it to 4 or 3%. If you want to recover the loss, you can increase it to 10%.
The important point of this strategy is that it allows variations according to the event and the Bankroll itself. If it was an event in which the chances of you winning were really high (odds of 1.70 to one of 4.70) in the Final result, for example, why not bet 10% of the Bankroll?
We hope we have answered your questions!
Team Bet Cool
Sounds good!
I really liked this article about bank management! I am very interested in following a management that provides me balance! 😀
Dude! This content has changed my vision and can change my life.
Very good this content, very explanatory and enlightening, opened my mind and eyes to a good investment, thank you.
Very good your article, I just do not understand how I will know the probability of victory of a particular team? Could you explain this part to me better? by the simple Kelly Criterion method
Hello, Dimas! Glad you liked the article. If your question is related to how you, as a bettor, will find the probability of an outcome happening, the tip is always to research the odds of other bookmakers and study the statistics of the team in the competition to formulate your guess, that is, create your own odd. Two articles can help you in this regard: / o-que-sao-odds/ and / positive-expected-value/ . Then, put your odd in the Kelly Criterion formula, as mentioned in the text.
I am new and inexperienced in this betting market. What would be " odd " in cases whose results can vary from 1 to 10?
Hi, Isaiah! Odds are basically probabilities. At the bookmaker, odds can represent the odds of an outcome happening and the potential gain if your bet is a winner. In other words: an odd is a quote that a bookmaker assigns to an event, result or market. And at the same time, it is a way for you to know how much you can win by betting on this odd. In the example you gave, “odd " would be the probability of an outcome happening. You can know all about odds in this article: / o-que-sao-odds/ .
I started my bankroll with 50 Dollar (NZD), I have my bet line that brings me a good return, but I ended up betting everything I won, I did not manage the Bankroll, I won a lot, but I lost a lot too,after 7 days I verified that I had already won 3.750, 00 in Bet, but my bankroll was 320,00. All this because it entered with very high values in the bets. I even made 200 bets, having 400 in the Bankroll. Today I try to bet 15% of the Bankroll only and make a good management of profits.
Would you like to know what percentage of the Bankroll and the ideal gain per day, to end the bets?
I have a bankroll of $ 400, I want to make 5% a day ! Is $ 20 correct ?
The ideal would be to divide this value into how many times ? Or make a single entry?
My bankroll is in blaze and I make up to 2 martingale...
Great text and simple to understand.
Thank you to those involved.