Bankroll Management Guide
Master bet sizing, Kelly Criterion, and risk management strategies for sports betting success
What is a Bankroll?
Your bankroll is the total amount of money you've set aside specifically for sports betting. It's your betting business capital - money that's completely separate from your living expenses, savings, and emergency funds.
Golden Rule: Your bankroll should be money you can afford to lose without it affecting your lifestyle. If losing your entire bankroll would cause financial hardship, your bankroll is too large.
Why proper bankroll management matters:
- Survives inevitable losing streaks
- Prevents emotional betting and chasing losses
- Allows you to capitalize on long-term edges
- Separates professional bettors from gamblers
How Much Bankroll Do You Need?
Recommended Starting Bankrolls
| Bettor Type | Minimum Bankroll | Recommended |
|---|---|---|
| Casual/Recreational | $250-500 | $500-1,000 |
| Serious Hobbyist | $1,000-2,000 | $2,000-5,000 |
| Semi-Professional | $5,000-10,000 | $10,000-25,000 |
| Professional | $25,000+ | $50,000-100,000+ |
Why these amounts?
- Allows proper 1-2% bet sizing
- Can survive 20-30 bet losing streaks
- Maintains psychological comfort during downswings
- Meets bookmaker minimum bets ($5-10 typical)
Bet Sizing Strategies
The Unit System
Most bettors use a unit system where 1 unit = a fixed percentage of your bankroll.
Standard unit sizing:
- 1 unit = 1% of bankroll (most common, conservative)
- 1 unit = 2% of bankroll (moderate risk)
- 1 unit = 3% of bankroll (aggressive, higher variance)
Example with $1,000 bankroll:
- 1% system: 1 unit = $10
- 2% system: 1 unit = $20
- 3% system: 1 unit = $30
Most bets are 1 unit. Higher confidence bets might be 2-3 units. Never exceed 5 units (5% of bankroll) on a single bet.
Fixed Percentage Method
Always bet the same percentage of your current bankroll. As you win, bet sizes increase. As you lose, bet sizes decrease.
Pros:
- Automatically adjusts to bankroll changes
- Protects against ruin during losing streaks
- Capitalizes on winning streaks
Cons:
- Requires recalculating stakes frequently
- Can be psychologically difficult during downswings
Fixed Unit Method
Keep the same dollar amount per unit regardless of bankroll fluctuations. Adjust unit size only when bankroll grows or shrinks by 25-50%.
Pros:
- Simple to implement
- Consistent bet sizing
- Less mental math
Cons:
- Doesn't adjust automatically to bankroll changes
- Can overbet during downswings if not careful
The Kelly Criterion
The Kelly Criterion is a mathematical formula that calculates the optimal bet size based on your edge and the odds.
Kelly Formula
Kelly % = (Edge × Odds - 1) / (Odds - 1)
Or simpler: Kelly % = Edge / Decimal Odds
Example:
You estimate a team has a 55% chance of winning, but the odds are +100 (2.0 decimal, 50% implied).
- Your edge: 55% - 50% = 5%
- Kelly % = 0.05 / 2.0 = 0.025 = 2.5% of bankroll
With a $1,000 bankroll, Kelly says bet $25.
Fractional Kelly
Most bettors use fractional Kelly to reduce variance:
- Half Kelly: Divide Kelly recommendation by 2 (conservative)
- Quarter Kelly: Divide by 4 (very conservative, recommended for most)
Use our Kelly Criterion Calculator to calculate optimal bet sizes.
When to Use Kelly
✅ Good for:
- Positive EV betting where you know your edge
- Large sample size betting (hundreds of bets)
- Bettors comfortable with math and variance
❌ Not ideal for:
- Recreational bettors without edge estimation skills
- Low sample sizes
- Bettors uncomfortable with large swings
Bankroll Management Strategies
Strategy 1: Conservative (Low Risk)
Profile: Recreational bettor, low risk tolerance, entertainment-focused
- Bet 0.5-1% of bankroll per bet
- Never bet more than 2% on any single game
- Recalculate units every month or when bankroll changes 50%
- Can survive 100+ bet losing streaks
Strategy 2: Moderate (Balanced)
Profile: Serious hobbyist, moderate risk tolerance, profit-seeking
- Bet 1-2% of bankroll per bet
- Max 3-4% on highest confidence plays
- Recalculate units every 2 weeks or when bankroll changes 30%
- Can survive 40-50 bet losing streaks
Strategy 3: Aggressive (High Risk)
Profile: Experienced bettor, high risk tolerance, edge-based betting
- Bet 2-3% of bankroll per bet (or use Kelly/Fractional Kelly)
- Max 5% on best opportunities
- Recalculate units weekly or when bankroll changes 20%
- Higher variance, larger potential gains and losses
Common Bankroll Mistakes
1. Betting Too Much Per Game
Betting 10-20% of your bankroll per bet is a recipe for disaster. Even with a 60% win rate, you can easily lose 5-10 in a row.
Reality check: Even professional sports bettors with a 55% win rate (very good) will experience 10+ bet losing streaks multiple times per season.
2. Chasing Losses
Increasing bet sizes after losses to "get even" is the fastest way to go broke. Stick to your system regardless of recent results.
3. Not Separating Bankroll from Life Funds
Betting with rent money, savings, or emergency funds creates emotional pressure that leads to bad decisions.
4. Inconsistent Bet Sizing
Betting $10 on one game and $100 on another without a system makes it impossible to track true performance.
5. Never Adjusting Unit Size
If your bankroll doubles or halves, your unit size should change proportionally. Review and adjust regularly.
6. Parlays and Lottery Tickets
Risking significant portions of bankroll on low-probability parlays destroys long-term profitability.
Practical Bankroll Tips
1. Keep Separate Betting Account
Use a dedicated account or e-wallet for betting funds. This creates clear separation and makes tracking easier.
2. Track Everything
Record every bet: date, sport, type, odds, stake, result. Use a spreadsheet or app. You can't improve what you don't measure.
3. Set Win/Loss Limits
Daily or weekly limits help prevent emotional betting:
- Stop betting if you lose 10% of bankroll in one day
- Take a break after major winning or losing sessions
- Never try to "get even" before end of day
4. Withdraw Profits Regularly
When bankroll grows significantly (50-100%), consider withdrawing excess profits. This secures winnings and reduces risk.
5. Have Multiple Bankrolls for Different Strategies
If you do both arbitrage and value betting, consider separate bankrolls since they have different risk profiles.
6. Account for Variance
Even with an edge, expect downswings. A 55% win rate bettor will be down after 100 bets roughly 30% of the time. This is normal.
Example Bankroll Scenarios
Scenario 1: Recreational Bettor
- Starting bankroll: $500
- Unit size: 1% = $5
- Typical bet: 1 unit ($5)
- Max bet: 2 units ($10)
- Bets per week: 5-10
- Goal: Entertainment + small profits
Scenario 2: Serious Bettor
- Starting bankroll: $5,000
- Unit size: 1% = $50
- Typical bet: 1-2 units ($50-100)
- Max bet: 3 units ($150)
- Bets per week: 20-40
- Goal: Consistent profits, long-term growth
Scenario 3: Professional Bettor
- Starting bankroll: $50,000
- Unit size: 1% = $500 (or Kelly-based)
- Typical bet: 1-3 units ($500-1,500)
- Max bet: 5 units ($2,500)
- Bets per week: 50-100+
- Goal: Living income from betting
Recovering from Bad Runs
Every bettor faces losing streaks. Here's how to handle them:
1. Don't Panic
Variance is normal. Even with a 60% win rate, you'll lose 10 in a row multiple times in your career.
2. Review Your Process, Not Results
Ask yourself:
- Am I still betting my best opportunities?
- Am I sticking to my unit sizes?
- Am I tracking and analyzing my bets?
If yes to all, keep going. Short-term results don't indicate long-term success.
3. Lower Unit Size if Necessary
If bankroll drops 30-50%, lower your unit size proportionally. This is discipline, not weakness.
4. Take a Break
If you're emotional, take a few days off. Betting while tilted guarantees bad decisions.
5. Never Chase
Don't increase bet sizes to recover losses faster. This is how bettors go broke.
Advanced Bankroll Concepts
Risk of Ruin
Risk of ruin is the probability you'll lose your entire bankroll. It depends on:
- Your win rate
- Bet sizing as % of bankroll
- Number of bets placed
General guideline: With 1% unit sizing and a 52% win rate, your risk of ruin is near zero. With 5% units, risk increases dramatically.
Optimal F
Similar to Kelly, Optimal F calculates the ideal bet size to maximize growth while managing risk. It's more complex but accounts for multiple betting opportunities.
Multiple Bankrolls
Professional bettors often maintain:
- Core bankroll: Main betting funds
- Reserve bankroll: Backup if core depletes
- Bonus bankroll: For clearing bonuses and promotions
Key Takeaways
✓ Bankroll Basics:
- Use money you can afford to lose
- Start with at least $500-1000
- Separate from living expenses
- Track everything meticulously
✓ Bet Sizing:
- 1-2% per bet for most bettors
- Never exceed 5% on single bet
- Use Kelly Criterion for edge-based betting
- Adjust units as bankroll grows/shrinks
✓ Risk Management:
- Survive losing streaks with proper sizing
- Don't chase losses by increasing stakes
- Take breaks during emotional periods
- Focus on process, not short-term results
Ready to put bankroll management into practice? FairOdds Terminal helps you find +EV opportunities and track your bets to ensure you're maintaining proper bankroll discipline.
FAQ: Bankroll Management
What is bankroll in sports betting?
A bankroll is the total amount of money set aside specifically for sports betting. It should be money you can afford to lose without affecting your daily life. Think of it as your betting business capital.
How much should I bet per game?
Conservative bettors should risk 1-2% of their bankroll per bet. Aggressive bettors may go up to 3-5%. Never bet more than 5% on a single game. This ensures you can survive losing streaks without going broke.
What is the Kelly Criterion?
The Kelly Criterion is a mathematical formula that calculates the optimal bet size based on your edge and the odds. Kelly = (Edge / Odds). Most bettors use fractional Kelly (half or quarter Kelly) to reduce variance.
How much bankroll do I need to start sports betting?
Start with at least $500-1000 for recreational betting, or $2000-5000 for serious betting. This allows you to make proper unit sizes and survive variance. Never bet with money you can't afford to lose.
Should I increase my bet size after winning?
Yes, but systematically. As your bankroll grows, increase your unit size proportionally (e.g., 1% of current bankroll). Don't chase losses or increase bets emotionally after wins.
What is a unit in sports betting?
A unit is your standard bet size, typically 1% of your bankroll. If you have a $1000 bankroll, 1 unit = $10. Using units helps standardize bet sizing and track performance independently of bankroll changes.
How do I avoid going broke?
Use proper bankroll management: never bet more than 1-5% per game, maintain proper unit sizing, avoid chasing losses, keep detailed records, and never bet money you need for living expenses.
Should I have separate bankrolls for different sports?
Not necessary for most bettors. One consolidated bankroll is simpler to manage. However, if you have very different edge levels in different sports, separate bankrolls can help you size bets appropriately.