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Bankroll Management | Unit Size, Staking Plans, Risk Limits

Bankroll management is the framework you use to size your bets, control risk, and survive variance. With the right unit size and staking plan, you protect your roll, avoid tilt, and give your edge time to play out. This guide covers unit sizing, popular staking methods, risk limits, and common mistakes—so you can bet smarter from day one. For a neutral primer on optimal staking math, see Wikipedia’s Kelly criterion article.

What Is Bankroll Management?

Bankroll management is the set of rules you follow to determine how much to wager and when. It prevents short-term swings from wiping you out and helps translate small edges into long-term results.

Step 1: Set Your Bankroll & Unit Size

  1. Define your bankroll: Money set aside for betting. It should be disposable and separate from bills/savings.
  2. Pick a unit size: Commonly 0.5%–2% of bankroll per bet. Recreational bettors often choose 1%. Example: $2,500 roll → 1% unit = $25.
  3. Stick to it: Units standardize stakes across sports and keep emotion out.

Step 2: Choose a Staking Plan

Flat Betting (Beginner-Friendly)

Bet the same number of units on every play (e.g., 1u each). Simple, disciplined, and resistant to tilt.

Percentage of Bankroll

Bet a fixed % of your current bankroll each time (e.g., 1%). Stakes scale up as you win and down as you lose. Slightly more complex than flat.

Kelly (Fractional Kelly Recommended)

Bet more when your edge is bigger, less when it’s smaller. True Kelly is aggressive and error-sensitive, so most use ½ Kelly or ¼ Kelly to reduce volatility. See Kelly criterion for the math.

Expert Note: If you don’t have robust edge estimates, flat betting or 1% of bankroll per wager is safer than full Kelly.

Step 3: Set Risk Limits

  • Daily exposure cap: Limit total staked per day (e.g., ≤5–7% of bankroll).
  • Per-event cap: Don’t exceed a max stake per game (e.g., ≤2u).
  • Stop-loss / stop-win: Optional session limits (e.g., -4u or +6u) to curb tilt and overconfidence.
  • No chase rule: Losing doesn’t increase unit size. Ever.

Step 4: Track Results & Adjust

  1. Log bets: Date, sport, market, price, units, result, and closing line.
  2. Monitor CLV: Are you beating the close? See Closing Line Value (CLV) & Line Movement.
  3. Recalibrate units: If bankroll changes by ~25–33%, consider resizing your 1u to keep risk steady.

Examples

Flat Betting Example

$3,000 bankroll, 1% unit = $30. Place 1u on each pick regardless of confidence. After a $300 drawdown to $2,700, keep 1u = $27 if you’re using % of bankroll; stay at $30 if you’re pure flat until next review.

Fractional Kelly Example

If your estimated edge implies a full Kelly of 2.4% of bankroll, a ½ Kelly stake is 1.2% (safer volatility).

Common Mistakes

  • Chasing: Increasing size after losses.
  • Overbetting parlays: Fun but variance-heavy; keep stakes small.
  • Ignoring vig: Paying -120 regularly crushes ROI; shop lines. See How to Shop Betting Lines.
  • Unit creep: Quietly bumping unit size after a hot week.

FAQs: Bankroll Management

How big should my unit be? 0.5%–2% of bankroll is typical; 1% is a popular starting point.

Should I change units when I win or lose? Many review monthly or when the roll moves ±25–33%. % bankroll methods update automatically.

Is Kelly the best? Kelly is optimal if your edge estimates are accurate. Most use fractional Kelly to manage volatility—or flat bet.

Related Guides

Responsible Gaming

Bet responsibly. Set limits, track results, and seek help if betting stops being fun.