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How to manage a bankroll in sports betting

How to manage a bankroll in sports betting
Take advantage of this article to learn a little more about bankroll management in sports betting.
by Josué Ramos   |   comments 0
Thursday, June 4 2020

When we talk about bankroll management in sports betting we are always referring to a set of rules that will be placed in front of our attitudes. This serves to standardize our actions and shape our reactions through the most varied situations.

In banroll management, two concepts need to be taken into account. It is about the mathematical relationship and the human relationship. In which the human relationship refers to the individual's interpretation, or rather, his cognition. As for the mathematical relationship, it refers to the logical organization of this cognition, resulting in the methodology of this bettor.

What is bankroll management in sports betting and what is it for?

The first step in understanding bankroll management in sports betting is knowing how to differentiate the terms management and bankroll division. Many gamblers associate this management with the simple act of dividing the bankroll in some way. However, management goes far beyond that, this process being only a part of bankroll management itself.  Banroll management is nothing more than long-term planning, which you will first need to develop a method from your simulation history and from there, develop a management suited to your profile.

The method, the strategy of how you will manage your bankroll and the stakes division end up standardizing all the bettor's movements in the market. Thus, defining when and how the bettor will bet, consequently managing their bets in the long run. Therefore, bankroll management aims to manage the gambler's risk within a predefined period.

Many gamblers end up asking themselves, but what is bankroll management for? Bankroll management aims to manage the bettors' gains and losses, but mainly to manage their attitudes towards losses and gains, in addition to standardizing actions, bets and reactions. In this way, any bettor will know how to act at the time of the famous bad runs, maintaining a standard on the established method and thus avoiding greater losses.


What are the dangers of betting without following bankroll management?

Currently, most bettors considered professionals, follow a bankroll management, which was created from their work method already proven in previous bets. The dangers of a bettor continuing to bet without remaining within bankroll management is the same risk of someone crossing a busy expressway blindfolded.

Many bettors consider that you only have to start betting that you will soon have a return, since that, most enter this life aiming to win a lot of money. However, it is known that it is not that way that things work, because to become a bettor who can be profitable takes time, experience and especially a lot of patience and discipline.

In addition, betting without following a management will lead many to give up sports betting, as in the first lost bets they "they cram their feet in their mouths” and will be at the mercy of luck and bad luck.

How to do your own bankroll management?

Therefore, to do your own bankroll management, we must first have a pre-defined method through bets already registered. It can be simulations of betting within a good period of time.  So, the first step is to register and simulate bets in a specific league, where you hold information and do your planning for a certain time, which only you can define yourself.

It is important to take notes on all entries and understand the reason why you are making that bet. Your goal when performing simulations and studying your numbers later in that league, is to define adjustments in your readings and thereby define a method.

No matter how you choose your bets, because with this study of your numbers and notes, you can identify errors and adjust attitudes.

The strategy of how you will manage your bankroll is of paramount importance, as the definition of the stake used in each bet is based on your numbers as a bettor, just as the division of your entire bankroll is based on that.

But before we divide the bankroll, it is necessary to understand your betting strategy, your objective as a bettor, mainly to clarify your rules and criteria for a decision.

Sports betting bankroll division

Something basic for a good bankroll division is to keep in mind that your bankroll cannot have a stakes division lower than the number of your error rate.

That is to say, it doesn't matter if you divide your bankroll into units or percentages, the mathematical notion is the same. However, it is necessary to maintain a respectable relationship with the error rate.

In this way, all players have their Winrate numbers or hit rate. Let's say that a football bettor who maintains about 55% of winrate, he must maintain an average of odds appropriate to that hit rate. Another point is that if he keeps a hit rate at 55%, conversely he keeps an error rate at 45%, which must be taken into account when dividing this bank into units.

The explanation lies in the standard deviation in relation to the curves and the risk that this bettor will have in the course of the expected value. But to make it easier for the beginner who still won't have enough knowledge to be able to understand the notions of standard deviation of their numbers.  The simple notion of winrate fits just like a glove because it has a direct relationship with the values curve and risk.

Planning and strategy in bankroll management in sports betting

Another important step in bankroll management is the planning and strategy used by the bettor, these being the pillars of management itself, as they reflect the profile of this bettor.

A reminder just for everyone who is going to do their bankroll management. The bankroll management is the last step that a bettor will take before starting to bet for real. Before taking this step, the bettor will have to simulate his bets and define all his basic methodology, in order to have the necessary basis to define a management.

The basic division that almost all refer to football bettors, of about 50 units in the bankroll, are numbers based on an average of standard odds, compared to a standard average of correct answers. However, this is mistaken for bankroll management, when in fact it is just a generic bankroll division.