Guide to Bankroll Management and Staking Strategies

If you’ve been around the world of sports betting for any length of time, you’ve probably heard the term “bankroll management”, often in relation to how important it is. If you’re not sure what it is or need some effective strategies, this is the guide for you. 

What is a Bankroll and Why is it Important?

A bankroll is a budget that you use to gamble, and bankroll management refers to the management of this budget.

With sports betting, you’re constantly fighting against the tide. You’re betting against books that have run the sums, set the odds, and taken the vig. You’re also fighting your emotions, from the impulsivity that you feel when you lose to the influence that your favourite team has over you.

Bankroll management can help you to keep all of this in check. At the very least, it will control your money and ensure you don’t lose more than you can afford. If you’re good and/or lucky, it could be the thing that makes you profitable.

First, you must determine how much you can afford to gamble. Calculate your living expenses, savings, investments, and everything else you need, and then consider how much of the rest you will use to gamble.

From there, you must calculate your “standard wager”. This is the amount that you will bet per line and it’s calculated as a percentage. For instance, if you use 2.5% and your bankroll is at $1,000, your standard wager is $25.

If you win your first bet and your bankroll grows, then so will your standard wager (as it’s now 2.5% of a greater amount).

Introduction to the Kelly Criterion Staking Method

Betting strategies go hand-in-hand with bankroll management, as they determine how big your wagers should be in relation to your bankroll.

The Kelly Criterion betting strategy is similar to the Confidence Strategy, whereby you increase your standard wager when you feel more confident about the pick. 

There’s a little more to it than that, though…

Kelly Criterion Staking Strategy

The idea behind the Kelly Criterion staking strategy is that you calculate the winning percentage of each bet and set your stake accordingly.

The formula looks like this: 

(Decimal odds of bet minus stake * win probability in decimal - loss probability in decimal) / decimal odds of bet = suggested bet percentage.

For example, let’s say that you’re betting on a -110 (or 1.91 in Decimal Odds or 0.91 when you minus the stake) Moneyline wager that you think has a 55% chance of winning. The formula would look like this:

(0.91*.55-.45)/0.91= 0.055

The great thing about this strategy is that it allows room for those bets that you’re not very confident about but still want to place. It also means you can focus most of your bankroll on the bets that have the highest chance of winning.

The problem with this is that you need to be very precise with your win probabilities. If you’re betting on a +200 underdog, for instance, don’t just throw a random “50% chance” out there, as it means you’ll end up wagering a massive 25% of your bankroll.

Think, calculate, double check, and then place your wager accordingly. 

Proportional Staking

Proportional staking means that you adjust your stake when you think the odds are under-priced.

It’s the betting equivalent of stocking up on provisions when there is a sale. But instead of cheap soap and pantry goods, you’re getting cash that will build your bankroll and prepare you for the future.

For instance, if a team is +300 but you’re sure something has been missed and the bet should be closer to +110, you would increase your standard wager. Conversely, if the odds are -110, you’d reduce your wager.

 Minimum & Maximum Stake Limits

To prevent staking too much of your bankroll on a single bet, you can use a minimum and maximum stake strategy. Simply set a minimum and maximum standard bet, such as 1% of your bankroll for the minimum and 5% for the maximum, and then adjust based on probability.

Whenever you’re confident, bet toward the higher end of this limit. When you’re not sure, opt for a lower amount. 

For instance, if your bankroll is $1,000, you may choose to bet $10 on an outsider that you think has a slim chance, and $50 on a Moneyline bet you think is a sure thing.

Flat Betting Model

The flat betting method is one of the simplest betting strategies, as you always bet the same amount. Regardless of what you think the outcome will be or how big the odds are, you bet the same amount.

Calculate your standard wager and use it to place all your bets.

The upside to this method is that you don’t risk throwing away all your bankroll in a couple of days or even a couple of wagers. 

The downside is that there’s no room to maneuver, and you end up betting the same amount whether you think it’s a dead-cert or a massive underdog.