Betting Bankroll Management

Betting Bankroll Management



Punters must consider many factors in the never-ending battle with the bookmakers. Of course, picking out exactly what to bet on tops the list of priorities, swiftly followed by ensuring that those bets are placed at the best available price. The concept of good bankroll management is not too far behind though – and some would argue is of at least equal importance in the long run.

The Betting Bankroll

The first piece of advice for all punters is that money to be used for betting should be kept separate from funds required for inconveniences such as mortgage payments, grocery shopping, electricity bills etc.

In all seriousness though, having paid for the essentials, decide how much of your discretionary income you are comfortable betting with and set this amount aside as your betting bankroll. Betting within your comfort zone is crucial in consistently making good, clear-headed decisions unaffected by the pressures of gambling with money you can’t afford to lose.

Bankroll Management

Bankroll determined; the next task is to decide upon an appropriate management strategy. And in the betting world when we refer to bankroll management, what we are speaking of is staking i.e., how much should we be placing on our bets. In selecting an appropriate staking level or method, we ought to have two main goals.

  • Bankroll Protection: i.e., minimising the chances of going broke.
  • Growth: Maximising profit over time.

Fixed Unit Based Systems

The first step in many staking systems is to divide the betting bankroll into units. With the unit determined being the standard amount to stake upon an individual bet. Most professional gamblers suggest a unit value of around 1-2% of the total bankroll, e.g. a bettor with a bankroll of £1000 may settle on a unit stake of anywhere between £10 and £20.

Level Staking

Unit-based systems then fall into two main categories. The first – and simplest – of which is the level stakes method - also known as flat level betting. One of the most commonly used staking systems, this method involves staking exactly one unit on every betting selection.

Scaled Unit System

Whilst easy to follow, a common complaint with the level staking method is that it requires the same stake no matter the odds– be they 1/2 (1.50) or 50/1 (51.00). Rather than sticking rigidly to this, many gamblers adopt a scaled unit system, staking 1 unit on their biggest priced selections, 2 units on those at midrange prices, and 3 units on their shortest priced bets, in order to even out variance.

An alternative is to vary the number of units according to the level of confidence behind the bet; for example, staking 3 units upon those we feel most confident about and only one on those we are less certain of.

Percentage Staking System

As you may have guessed this method involves staking a set percentage of the bankroll on each bet - most commonly between 1% and 5%. With this system the stake will vary from bet to bet, going slightly up following a winning selection and slightly down after a loss.

For example, consider a bettor with a bankroll of £100 who opts to stake 5% on each bet, creating a stake of £5 for his first bet. Should this first bet lose, his bankroll would decrease to £95 sending his next stake down to £4.75 (5% of £95 = £4.75). However, should this first bet achieve a profit of £20 for example, the bankroll would grow to £120, resulting in a stake of £6 (5% of £120 = £6) for the next bet.

The perceived benefits of the percentage system are twofold. Firstly, it enables the bankroll to grow more quickly during a winning sequence when compared to a level stakes approach; and secondly, the steadily decreasing stake can lessen the downside resulting from a series of losses.

Advanced Staking Systems

Providing the selections consistently represent good value, both the level staking and percentage systems will enable gamblers to grow their bankroll over time. However, some like to use a more scientific approach. Enter the Kelly Criterion staking system.

The Kelly Criterion

Designed by mathematician John L. Kelly, the Kelly Criterion is a stake calculation formula designed to maximise long-term growth whilst guarding against the possibility of going broke. The basic premise is that the more the odds are in your favour, the higher your stake should be. Those interested in following this staking method have two options; either calculate the stake using the formula:

  • % Stake = bp - q
  • b

Where:

  • b = Decimal odds of selection – 1
  • p = probability of winning (expressed as a decimal i.e. 70% = 0.70)
  • q = probability of losing, again expressed a decimal.

Or use one of the many Kelly Criterion Calculators freely available online.

One thing to note with this method is that it does at times suggest a level of staking outside the comfort zone of many gamblers, with a recommendation of staking 20% and upwards on a single bet, being far from unusual. As such many choose to adopt a half-Kelly, or quarter-Kelly approach i.e., taking the recommended Kelly Stake and then dividing by two or four.

Track Your Results

Whichever of the above systems you choose to adopt, another crucial aspect of bankroll management is tracking your results. A simple excel spreadsheet will suffice to record the results of your bets.

Recording details such as the sport you are betting on, type of bet, odds, and stake will enable you to not only assess your overall results, but also zero in on those areas where you are doing particularly well, or badly. Additionally, a spreadsheet of your results will enable you to retrospectively trial a range of alternative staking systems e.g. would a percentage or level stakes approach have fared better over the same set of results.

Final Thoughts

Even the very best betting judges can be undone by poor bankroll management. If you have an edge, correct bankroll management will enable you to realise it. Stake incorrectly, and you may well go bust unnecessarily, wasting your ability to pick good value bets and achieve a profit. Remember, betting is a marathon and not a sprint. Solid bankroll management will keep you in the game and on track to meet your long-term goals.


You might also be interested in:

Betting Margins Explained

How to calculate Football Betting Margins

How to calculate Horse Racing Margins

Top 20 Betting Offers

Ladbrokes
Ladbrokes
Bet £5 Get £20 in Free BetsClaim Offer

18+ New UK+IRE Customers only. Min first £5 bet within 14 days of account reg at min odds 1/2 to get 4x £5 free bets. Stake not returned. Restrictions + Free bet T&Cs apply.

Betfred
Betfred
Bet £10 and get £50 in Free BetsClaim Offer

New customers only. Register with BETFRED50. Deposit £10+ via Debit Card and place first bet £10+ at Evens (2.0)+ on Sports within 7 days to get £50 in free bets. 3 x £10 in Sports Free Bets & 2 x £10 in Acca Free Bets within 10 hours of settlement. 7-day expiry. Eligibility & payment exclusions apply. T&Cs apply.

Bet365
Bet365
Bet £10, Get £30 in Free BetsClaim Offer

Min deposit requirement. Free Bets are paid as Bet Credits and are available for use upon settlement of bets to value of qualifying deposit. Min odds, bet and payment method exclusions apply. Returns exclude Bet Credits stake. Time limits and T&Cs apply. Registration required.

10bet
10bet
100% Welcome Bonus up to £50Claim Offer

New bettors; Code SPORT; Wager deposit & bonus 8x; Max qualifying bet stake=initial bonus; Valid 60 days; Min odds, payment method exclusions apply; New customers only. T&C apply; 18+

Spreadex
Spreadex
Bet £25 Get £50 in Free BetsClaim Offer

New Customers place a £25 fixed odds bet at minimum odds of 1/2. Get £50 in Free Bets as: 5 x £5 free fixed odds bets + 4 x £5 free Total Goals spread bets + 50 free spins on Starburst 18+. Full promotions terms apply.

Bzeebet
Bzeebet
Bet £10, Get a £10 Free BetClaim Offer

18+. New Customers Only. Max 1 x £10 Free Bet. Qualifying bets at Odds of 1/1 or greater. Paid as Bonus Token Min 4/5 Odds Req. Skrill, Neteller, Paypal not eligible. T&Cs Apply

talkSPORT BET
talkSPORT BET
Bet £10 Get £30 in free betsClaim Offer

18+ New customers only. Opt in & bet £10+ via mobile on any football market at 2.00+ odds within 7 days. No Cash out. Get 6x £5 Free Bets on selected markets. Free bets expire in 7 days. T&Cs apply. GambleAware.org | Please gamble responsibly

Betano
Betano
Bet £10 Get £10 in Free BetsClaim Offer

18+ New Customers Only. Opt in and bet £10 (odds 2.00+) within 3 days of sign up. No cash-out. Get a £10 Free Bet (odds 2.0+), which expires in 5 days. Scroll down for T&Cs. GambleAware.org | Please gamble responsibly

Midnite
Midnite
Bet £10 Get £20 in Free BetsClaim Offer

New UK Customers. Register using code BETGETSPORTS. Must bet £10 in total on 4+ legs, min odds 4.0. £20 awarded as 4 X £5 free bets once settled, AND 50 Free Spins to use on Big Bass Splash (valued at 10p per spin). Free bet T&Cs Apply. 18+. BeGambleAware.org

Virgin Bet
Virgin Bet
Bet £10, Get £20 in Free betsClaim Offer
£10 min deposit. First bet mins odds 1.5 placed within 14 days of sign-up. 2 x £10 in Free Bets: valid for 7 days, free bet stakes not returned. Bet Responsibly. BeGambleAware.org. 18+ T&Cs apply.
Copybet
Copybet
Bet £10, Get £50 in Free BetsClaim Offer

New UK customers only. Qualifying bet should be a Single or Accumulator bet, min stake £10, and min odds 1.9. Get £50 in Free bets which must be placed with a min odds of 2.0 include: 1 x £10 Free bet for horse racing, 1 x £10 Free bet on football, 2 x 10 Free bet In-play, 1 x £10 Free bet Acca (min 3 selections). To unlock the offer, complete the first deposit via the banking app. Max payout – £500. 7 day expiry. 18+. Begambleaware.org

FafaBet
FafaBet
Get a 150% Deposit Bonus up to £100Claim Offer

New Customers only. Deposit and bet with min odds of 2.0. You will receive a 150% deposit bonus if your qualifying bet on the first day is four times your deposit. Full Terms apply. 18+ begambleaware.

William Hill
William Hill
Deposit & Bet £10 to get £60 Free BetClaim Offer

18+. Play Safe. New customers only, using promo code T60. Valid from 13/04/2022. Online play. Get £60 Bonus split between Vegas & Sports in the following manner – (i) Deposit £10 to unlock £20 Vegas Free Bet on Selected Games (72hr expiry, wagering reqs apply); then (ii) bet £10+ (odds 1/2+) with cash (excl. £10 deposit) or Vegas winnings (after wager reqs met). Once settled, receive £40 Sports Free Bets excluding Virtual Markets (4x £10, 7 days expiry). Full T&Cs apply. #ad

Bet442
Bet442
Bet £20 Get £10 in Free betsClaim Offer

18+. New customers only. Min deposit £20. Max One £10 Free Bet. Min turnover £20. Qualifying Bets must be placed at odds of 1/1 (2.00) or greater. Paid as bonus token with Min 4/5 (1.80) odds req. T&Cs apply.

Unibet
Unibet
Bet £10 Get £40 in BonusesClaim Offer

18+. BeGambleAware.org. New GB customers only. Min £10 debit card deposit. Place a £10+ bet at Evens (2.0)+ on Sports within 7 days. Opt in for £20 in free bets and £20 Casino Bonus. Valid for 7 days. Geographical restrictions and T&C’s apply. #AD

Betway
Betway
£30 Matched Free BetClaim Offer

New Customers. Min Deposit: £5. Maximum Free Bet: £30. First qualifying bet with 3+ selections. Overall odds: 3.00+ (2/1). If first bet loses free bets will be credited after bet settled. 100 Free Spins on Gold Blitz credited on settlement of qualifying Acca bet. 18+. BeGambleAware.org. Bet The Responsible Way. Full terms apply

Highbet
Highbet
Bet £10, Get £20 Free Bets + 20 Free SpinsClaim Offer

New customers Deposit and place your first bet on Sports at odds of Evens (2.0) or greater. Once bet is settled you will receive 1x £10 Free Bet Token to be used on Football, 1x £10 Free Bet Token to be used on Horse Racing, and 20 Extra spins (value per spin 50p), to be used on Book of Dead. Total bonus value £30. Full terms apply. 18+ begambleaware.

MyriadPlay
MyriadPlay
Bet £15 Get £15Claim Offer

New customers only. Min deposit £10. Max one £15 Free Bet. Min Turnover £15 to qualify. Qualifying bets must be at odds of Evens (2.0) or bigger. Full Terms apply. 18+ begambleaware.

Betrino
Betrino
Bet £25 Get £50 in Free BetsClaim Offer

New Players Only. Free bet - one-time stake of £50, min odds 1.5, stake not returned. 1X wager the winnings. Wager from real balance first. Wager calculated on bonus bets only. Max conversion: £200. Valid for 7 Days from receipt. Limited to 1 sport & 5 casino brand/s within the network. Withdrawal requests void all active/pending bonuses. Excluded Skrill and Neteller deposits. Full Terms apply.

Quinnbet
Quinnbet
50% Bonus up to £50Claim Offer

Deposit and bet on any sportsbook markets of your choice at odds of evens (2.00) or greater. Get 50% back of your first days losses as a Free Bet up to £50 plus 50 Free Spins. Min. 3 bets required. If your account is up, you’ll receive a £5 Free Bet regardless plus 10 Free Spins. Use coupon code "5050" at registration. T&Cs apply | 18+ New UK Customers Only | GambleAware.org | Gamble Responsibly