Even newcomers to sports betting have heard of bankroll management. It’s about strategies for rationally managing your own bets. How high should the bets be? How should you manage your own finances for sports betting? These and other questions relate to bankroll management in sports betting. In this article, we will explain the basics of bankroll management with a focus on online sports betting.
Bankroll, bets, units in money management sports betting
Bank management in sports betting is based on bankroll, i.e. the starting capital for sports betting. The first step in bank management for the tipster is to choose the (monthly) starting capital, e.g. 500 euros. It is the (monthly) betting budget that you can definitely stick to. You decide that you can spend a maximum of 500 euros per month on bets and not a single euro more. Of course, you should choose your betting budget depending on your own financial situation (net salary, expenses, etc.)
The amount of your betting budget should be chosen so that losing this amount does not worsen your own financial situation. Your betting budget should be chosen as part of your variable entertainment costs – so it’s about expenses such as going to the cinema, Netflix subscriptions, etc. Expenses for rent, food, car costs, etc. always come first! You should also determine the amount of a single bet, and there are already various methods for this. Sports betting experts are of the opinion that the best individual bet should be 3-5% of your (monthly bankroll). This value could serve as a guide. In any case, for long-term betting success, you should place around 20 bets per month. Occasional punters can of course do it differently.
Bankroll management strategies for beginners and professionals in sports betting
One of the most common strategies for bank management in sports betting is the method with a fixed amount of bets. At the beginning of the month, you determine how much you should spend on a single bet, e.g. 2%, 5% or 10% of the bankroll. For a bankroll of 500 euros, the fixed bet of 5% would be 25 euros. The maximum amount you can bet on a bet is 25 euros, and this value remains the same. Whether you have a losing streak or a successful bet has no influence on financial management in sports betting. The bettor also does not take into account the betting market, betting odds and risk and other important factors for a bet. This simple method has certain advantages: it is easy to use, does not require complicated calculations and minimizes possible risks. There is therefore no possibility of spending more than expected on bets.
In addition to this simple strategy, which is very suitable for sports betting beginners, there are other “dynamic” money management methods for advanced bettors and profits. They belong to higher risk classes, but they have a higher long-term profitability. An American flat money management strategy is similar to the method described above, but also has its own peculiarities. For example, the stake remains fixed (e.g. 5% of the bankroll), but this 5% stake is recalculated each time depending on the size of the bankroll. Bankroll does not remain the same throughout the month if you place several bets that increase or decrease. And this 100% is accordingly different.
This method is easy, but helps the bettor get the most out of sports betting. The other most popular methods are Fibonacci, Martingale, D’Alembert, Oscar Grind and Kelly methods. Kelly method is aimed at calculating an optimal stake. The formula is as follows: stake as a percentage of bankroll = value divided by (betting odds minus 1).
Advantages of bankroll management in sports betting
Even though each of the methods listed above has its critics, bankroll management has many advantages. It is the financial basis that helps the bettor to use his betting budget optimally and achieve success. You just have to stay true to the strategy or combination of bankroll management strategies that you have chosen and always stick to the betting limits.