Bankroll management is the balance of money you have at your disposal for betting purposes. You can win or lose all your funds from a single bet, so it's important to stay on top of your bankroll and keep track of how much you're betting. The size of the bankroll depends on the amount you are willing to risk per bet.The problem is that it's difficult to know how much money you should bring to the table when it comes to making bets. Some sports bettors over-bet and lose all their money, while others under-bet and miss out on some major winnings.
The need to manage your bankroll is one of the most important aspects of sports betting, but there are lots of questions about this topic. This article will provide a detailed walk-through of the key factors to consider when determining how big your bankroll should be when betting on sports.
A Little About Probability Theory
Let’s first understand the concept of probability theory. Bettors placing bets on sports are continually dealing with probability because it is not always possible to predict the result accurately.
Consider a bet at odds of 1.87. It signifies that the chance of one of the tennis players to win is 60%. It is worth noting that a 60% chance is expressed as 1.66 in decimal odds format. If you place ten similar bets, you might lose at least four times. A chance of 60% signifies 6 wins and 4 losses out of 10. You might lose straight for four times in a row (most often, users face such losses in betting).
This can be explained with the theory of black and white balls in a bag. Suppose your losses are symbolized as black balls and your winnings by white balls. Each time you take out four balls from a bag, you usually get them in a ratio of 3:1 or 2:2. There will be also a chance when you take out all four white balls. On the contrary, you may also take out all four black balls, and this is the situation you must prepare yourself for.
If you bet 10% of your bankroll, four consecutive losses could cut your bankroll by 40%. This is a huge loss and it can demotivate you a lot. When you bet 20% of your bankroll, you might lose your entire bankroll.
Don't Get Perplexed
You must not bet more than 10% of your bankroll under any condition. This is applicable for pre-match bets as well as live bets.
Usersmust not complicate themselves with other theories of betting like the well-known Kelly criterion. This theory of betting is quite intricate and users may find it tough to calculate their real chances to win. Another theory of betting, where the usersare required to increase their bet may cause the players to lose four to six bets consecutively, and ultimately their entire bankroll. All these theories are gibberish.
This table clarifies why the fixed-interest rate system is bad.
Bank | Bid Size | Bet Amount | Result | New Bank |
|---|---|---|---|---|
1,000 | 3.00% | 30.00 | Won | 1030.0 |
1,030 | 3.00% | 30.90 | Lost | 999.1 |
999 | 3.00% | 29.97 | Won | 1029.1 |
1,029 | 3.00% | 30.87 | Lost | 998.2 |
998 | 3.00% | 29.95 | Won | 968.3 |
968 | 3.00% | 29.05 | Lost | 997.3 |
This table indicates that even if you eliminate the BM margin and if your bid amount percentage is the same each time, you eventually lose your bankroll. These six bets indicate a loss of 0.3%. Similarly, on 100 bets, the losses will be calculated as 4.4%, which means 50% chances of winning and 50% chances of losing.
Plateau Betting System
The betting system that is correct and useful is the Plateau Betting System. Here, the user decides the fixed percentage of their bank. They lay out their fixed bets until their bank surpasses the initial amount by a pre-determined minimum amount, and at this point theט can increase their next bet by a certain amount, depending upon how much their bank has gone up and down.
Check the table below for your recommendation.
Your bank
| Single Bet Size | New Bank Size⇒ rate increase | New Bank Size ⇒ lower bid |
|---|---|---|---|
500 | 15 | 750 | 400 |
750 | 20 | 1000 | 600 |
1000 | 30 | 1500 | 800 |
1500 | 45 | 2200 | 1300 |
2200 | 65 | 3300 | 1800 |
3300 | 100 | 5000 | 2600 |
5000 | 150 | 7500 | 4000 |
Let us describe this table. If the size of your bankroll is $500 and you bet $15 until your bank size is either $750 or $400. When the bank size is $750, you increase the size of the bet you make to $20. However, when the size of the bank is $400, the bet remains the same or get decreased.
We suggest that you begin with an average of 3% of your starting bankroll. If you grow your bankroll by 50%, just increase your bet size. On the contrary, if you have suffered a loss of more than 20%, reduce the size of your bet. This betting system doesn’t let the user to lose large amounts when they face a losing series. Besides, this system means users do not stagnate as they can gain profits when they enter a winning spree.
Let's Outline
- We strongly recommend that you should not place a bet of more than 10% of your bankroll in any condition.
- The Plateau Betting System is an efficient approach that lets you adjust the bet amount, depending on if you are winning or losing.
- You need to be disciplined to taste success in sports betting. You may not accomplish a long-term success if you lack discipline.
Because of the risk of losing all your funds in a single bet, it’s important to discipline yourself when you're gambling online. Online betting sites have several responsible gambling tools available, including time and bet limits. Setting these before you start playing is the best way to ensure that you stay safe while gambling.
Sources: dotennis.ru, translated by Abha Vardhan 2019