Simple Calculations for Bankroll Management
Learn how to easily manage your sports betting bankroll by calculating your staking size based on your betting experience and your selection confidence.
Published on 08 December 2017
Updated on 08 December 2017
Bankroll management requires simple calculations. Keeping the process simple is essential for the system to work. Some sports bettors may be able to do the calculations in their heads.
Most of the calculations are related to the size your bets. Here are some of the commonly used calculations for measuring bet sizes.
Level staking bankroll management
When using this system, you use the same betting size for all your bets, regardless of the size of your bankroll. Let’s say you start with £2,000 with a betting size of 1% of your bankroll or £20. In all your bets, you bet only £20, regardless of the changes in the size of your bankroll.
This system sets a floor and ceiling price for your bets. Most people like using this system because of its simplicity. You no longer need to keep track of your bankroll size. You just have to remember your initial betting amount based on your original bankroll size.
Percentage staking bankroll management
With this system, you adjust your betting size before each bet. Before you make your bet, check your bankroll size first. Then, multiply it with the betting rate that you use.
In our example above, you started with £2,000 with a betting rate of 1%. In the start of your betting campaign, your betting size is £20. After your first bet, you won another £20, increasing your total bankroll size to £2,020. On your second bet, you should increase your betting size to 1% of the new bankroll size:
£2,020 * 1% = £20.20
You should also adjust your betting size when your bankroll size decreases because of losses. In this case, your betting size should also decrease.
Variable staking plan
Beginners are better off starting with the staking plans discussed above. Intermediate level bettors however, need a more flexible system that allows them to adjust their bet according to their feel and knowledge of a game.
In the variable staking plan, you adjust your betting rate according to certain factors, including your confidence level with your decision and your potential returns on the bet.
Some bettors do well by adjusting the size of their bets based on their confidence level. In this system, you weigh the pros and cons of the game you a betting on. If there are a lot of uncertainties, you may feel that you are not confident with the bet. If this is the case, you could lessen your bet on your chosen player or team.
If your average betting rate is 2% for example, you could lower it to 1%. If you are confident of the win rate of a team, you could also increase your betting rate to double or triple your average.
When measuring your confidence, try to base your decision-making on your past successes and the current information available to you. Make sure that your confidence is based on facts and data. Try to avoid making decisions based on your emotions. If you follow this system, you will bet on more winners than losers.
You could do the same when considering the potential returns based on odds. If you are betting with the favorite, your chance of winning is great while your potential rewards are lower. If this is the case, you should increase your betting rate. If your chosen team, for example, has two-to-one odds of winning, you may also want to double your bet size.
If you are betting on the underdog, the potential reward is higher but your chance of winning is lower. Decrease your bet size when betting on them.
While variable staking may seem complicated at first, you will realize its value if you gain more experience in betting. It is better suited for people who like to take advantage of the adjustments on prizes due to the odds.
Section: Betting Bankroll