Bankroll Management 101

[DosBullets]

It has been said that the way you manage your bankroll, determines, whether or not, you will be a success, as a professional gambler. My question to fellow cappers is this:
To this point, I have been lucky enough to be able to , double my starting bankroll , playing college and NFL games. Entering this past weekend, feeling confident, I decided to step up my bets , and press hoping to ride my streak of good fortune. Then came the "WEEKEND OF THE FIELD GOAL." Seems like every game I had was determined by a field goal, none hurt more than the Tampa Bay bazooka shot of 60+ yards, killing some nice teaser bets for me. I took a 25% reversal hit to my bankroll. Did I do the right thing by aggressively increasing my bets? Should I have stayed with the previous units, obviously taking a less % reversal? What bankrolll methods have worked for others out there? Would like to here some input from fellow cappers on this issue. Any ideas would be appreciated. Thanks and as always...good luck.......

[The Judge]

What percentage of your bankroll are you eagering on each game? If you lost 25% then either you are betting too much per game or you had an indcredibly bad run on a lot of bets.

I very seldom wager more that 5% of my bankroll whether it is $500 or $5000.

[DosBullets]

Wagering 5% of total bankroll sounds about right , Judge. I problably should have stayed within those limits 5%-10% I increased bets to high. Just felt a need to press after double up of bankroll. Need to stay more discplined. Thanks for input.

[darealist2]

5% is too much

rule of thumb is 2-3% , GOY type plays 4%

[The Judge]

Originally Posted by darrel77

5% is too much

Darrel, as I stated, "I very seldom wager more that 5% of my bankroll" which would indicate that is the upper limits of my betting exposure.

[darealist2]

Judge, you'll have to excuse my ignorance but I've never been to Texas,and uh I uh was wondering if it's true that the only thing that comes from Texas is steers n' queers?

[dollarbills]

Originally Posted by The Judge

I very seldom wager more that 5% of my bankroll whether it is $500 or $5000.

solid advice here

[The Judge]

Originally Posted by darrel77

Judge, you'll have to excuse my ignorance but I've never been to Texas,and uh I uh was wondering if it's true that the only thing that comes from Texas is steers n' queers?

I would welcome the opportunity to answer this question face to face, Darrel. By the way, there is IS no excuse for your ignorance unless it is heridtary which I can only assume is the case.

[kahlmyishmael]

Originally Posted by darrel77

5% is too much

rule of thumb is 2-3% , GOY type plays 4%

I'd agree at a -110 book

...but at -104(pinnacle)...54% winners would equal a 6.16% Kelly Bet of bankroll

[Kramer]

Here's a simple one :

The purpose of money management
The purpose of money management is to provide you with the ability to continue wagering on sports during the inevitable losing streaks. By properly managing the money you have available to wager on sports you will have completed the most important step to turning a profit from your sports wagers.

The money you have available to wager on sports is a finite amount. Because of this harsh reality, you must use a strict money management plan that will reduce your risk. You must first start your money management plan with determining the size of your sports betting bankroll.

Determining the size of your sports betting bankroll
The easiest way to determine the size of your sports betting bankroll is to ask yourself this question: "How much am I willing to risk betting on sports?" Do not read this as the amount you are willing to risk on each wager. The answer to the question should be the total sum of money you are willing to risk wagering on sports.

The size of your bankroll should be a tangible amount that you have available to you. You should not be wagering your mortgage payment, or the money you have available to purchase food with.

Once you have determined the size of your sports betting bankroll it's time to calculate the amount of money you will risk on each wager.


Calculating the size of your wager
Sports betters make three common mistakes when calculating the size of each wager they make. They risk too much on each wager in relation to the size of their bankroll, they wager different amounts of money on each bet based on a perceived strength of the play, or they change the size of their wager based on the posted odds.

You should calculate your wager size as being 1% of your beginning bankroll. (Below I outline when you should re-calculate your wager size.) This is, however, a fairly conservative amount. If you risk anything over 2% of your bankroll, however, on each play you put yourself at risk to losing your entire bankroll to a losing streak.

For example:
To be a $100 bettor you should have a $10,000 bankroll ($10,000 x 0.01 = $100.00).

If playing 1% of your current bankroll is not enough for you then you should save until you build a bankroll that allows you to be satisfied with risking 1% on each wager.

Do not fall into the trap of changing the amount you wager on each bet based on a perceived strength. By using a method for rating plays based on a perceived strength you will be risking too much on each play, and you will ultimately cost yourself money over the long haul because of losing streaks.

For example: This example assumes odds of -110 (11 to win 10)
You risk 5% of your bankroll on a play with a 75% expected winning percentage. At the same time you risk 3% of your bankroll on a play with a 60% expected winning percentage. Now it's obvious an event with a 75% chance of occurring will happen more often than an event with a 60% chance of occurring.

The problem with risking different amounts on each play, however, is that you have an edge in both cases, but you are costing yourself money by not risking the same amount on each play. By playing 1% of your bankroll on each play you reduce your risk to sustain the losing streaks, and you don't cost yourself money on both advantageous situations.

One final point about the size of your wager: this is the amount you are going to risk on each play, not the amount you're going to win. Changing the size of your wager to win a certain amount based on the posted odds will only cost you money. This is because you will lose a greater percentage of your bankroll when you lose.

If you're still not convinced then take this food for thought: many online sportsbooks will, by default, assume the amount entered to wager is the amount the customer wishes to win. Not only does this get the customer focusing on how much they're going to win, but it increases the customers risk helping to make the sportsbook more money.


When to change your wager size
You should change your wager size when you have reached a set threshold. I suggest you set this threshold at 20% of your beginning bankroll.

Start with a 100 unit bankroll and risk 1 unit on each play (1% of your bankroll). Recalculate the size of your wager once you have a bankroll of 120 units (a gain of 20% of the original bankroll size). Continue to follow this basic pattern for changing the size of your wager as your bankroll will again be 100 units and you will risk 1 unit on each play (1% of your bankroll).


Summary
If you are serious about obtaining a profit from wagering on sports you must commit yourself to a strict money management system like the one outlined above. This money management system combined with a solid handicapping regime will give you the best chance to be a successful sports bettor.

[DosBullets]

Great post !!! Kramer. Thanks for your help.
Definitely will take your advise. Thanks and Good luck

[Deck]

Originally Posted by The Judge

I would welcome the opportunity to answer this question face to face, Darrel. By the way, there is IS no excuse for your ignorance unless it is heridtary which I can only assume is the case.

got awful quiet after this.

[verdict]

Originally Posted by The Judge

I would welcome the opportunity to answer this question face to face, Darrel. By the way, there is IS no excuse for your ignorance unless it is heridtary which I can only assume is the case.

roflmfao

[Dave0309]

In response to your question about bankroll management in sports bettting, there is a simple rule that applies regardless of whether you are a ten-dollar per game bettor or a one-thousand-dollar per game bettor: Bet around 2-3% of your bankroll and don't ever bet more than 5% of your bankroll on any given game. There are no locks. Let me repeat that - there is no such thing as a sure thing. Any bet can lose. Losing streaks can and do happen. Even in a season where you hit 60% overall, you'll have weeks where you hit 40%. It's an absolute certainty.

Can you make money with this strategy? Absolutely. In fact, its required to make money. Without this strategy, you will consistently lose regardless of how well you pick games. If you hit 54-58% (what you should expect), you will lose a lot of money (and maybe even deplete your entire bakroll) if you are betting more than 5% of your bankroll per game!

If you are winning and on a great roll, your bets can increase and you can win even more. How? You can simply use a percentage of your remaining bankroll. As your bankroll increases, your bet size increases. As your bankroll decreases, your bets decrease. A nice side benefit of this is that, by definition, you can never get wiped out. It is mathematically impossible to lose your entire bankroll if you are always betting a small percentage of it.

The bottom line: Remember, bet 2% - 5% of your bankroll on any given game (more often on the low end of that range). A good rule of thumb is about 3% per game. If you aren't as sure on a game, drop it to 1% or 2% and if you feel very good about a game, take it up to 4%. For those once or twice in a season games that you absolutely love, go with 5% but never more.

[Dr. Jack]

Originally Posted by Dave0309

In response to your question about bankroll management in sports bettting, there is a simple rule that applies regardless of whether you are a ten-dollar per game bettor or a one-thousand-dollar per game bettor: Bet around 2-3% of your bankroll and don't ever bet more than 5% of your bankroll on any given game. There are no locks. Let me repeat that - there is no such thing as a sure thing. Any bet can lose. Losing streaks can and do happen. Even in a season where you hit 60% overall, you'll have weeks where you hit 40%. It's an absolute certainty.

Can you make money with this strategy? Absolutely. In fact, its required to make money. Without this strategy, you will consistently lose regardless of how well you pick games. If you hit 54-58% (what you should expect), you will lose a lot of money (and maybe even deplete your entire bakroll) if you are betting more than 5% of your bankroll per game!

If you are winning and on a great roll, your bets can increase and you can win even more. How? You can simply use a percentage of your remaining bankroll. As your bankroll increases, your bet size increases. As your bankroll decreases, your bets decrease. A nice side benefit of this is that, by definition, you can never get wiped out. It is mathematically impossible to lose your entire bankroll if you are always betting a small percentage of it.

The bottom line: Remember, bet 2% - 5% of your bankroll on any given game (more often on the low end of that range). A good rule of thumb is about 3% per game. If you aren't as sure on a game, drop it to 1% or 2% and if you feel very good about a game, take it up to 4%. For those once or twice in a season games that you absolutely love, go with 5% but never more.

Welcome to the mall Dave and good post