Using Bankroll Management to Maximise Edge
What’s meant by bankroll management and how it helps you in value betting?
A lot of people take a very erratic approach when it comes to gambling activity, especially when they are indulging in sports betting. It’s not uncommon to see people staking their complete bankrolls on one single selection which they’re extremely confident of, doubling up their bets every time they register a win, increasing their bet amounts every time they register a loss or betting half of their entire bankroll on a certain long shot, just for the sheer fun quotient, chasing that big win!
Although such approaches may be very enjoyable, if you’re someone who is serious about making regular profits from sports betting, none of these are sustainable in the long term, as you’ll see yourself going bust every now and then. Wouldn’t it be better that you take an approach that guarantees no busts, and provides you with a consistent edge, one which you can use repeatedly to book guaranteed profits?
This is where an effective bankroll management system comes into the picture! Successful bankroll management is the hallmark of successful gamblers, and a good bankroll management system is usually a unit based system. Let’s learn more.
Unit based bankroll management system
A unit based bankroll management system carries out its task by assigning a specific range of units to a person’s betting endeavours. In most cases, this unit range varies from 1 to 5, however, the choice is entirely yours whether you wish to go higher or lower. When you use a 5 unit bankroll management system, you assign a single unit to the smallest bets, moving up one unit at a time, raising up to 5 units for bets that you’re very confident of. Ideally, majority of your betting activity should involve one unit bets. If at all you need to raise your units, you must do it gradually over a period of time, as you gain expertise in a particular betting market. The 5 unit bets should be rarely used by you. Every unit you bet would correspond to a certain percentage of your total bankroll – in majority of cases, every unit corresponds to 1% of the total bankroll. However, as we said earlier - the choice is entirely yours.
Let’s go over an example:
You are an ardent follower of Major League Baseball (MLB) games and have picked up 5 teams which you consider having excellent value – LA Dodgers, Chicago Cubs, Washington Nationals, New York Mets and San Francisco Giants. You’re of the opinion that Chicago Cubs, Washington Nationals and New York Mets offer some value, LA Dodgers offers good value and San Francisco Giants offers excellent value (and in fact is your bet of the day!). Therefore, you decide on placing your bets in the following manner:
LA Dodgers – 2 units
Chicago Cubs – 1 unit
Washington Nationals – 1 unit
New York Mets – 1 unit
San Francisco Giants – 4 units
Hence, you’ve bet 9 units in total, with 4 of them on San Francisco Giants. As you consider San Francisco Giants as the bet of the day, you’ve confidently bet 4 units on that team, but don’t consider it good enough to take up your bet to a maximum of 5 units. Let’s say your total bankroll is £ 1000. Hence, you will be wagering a total of £ 90 on all these games, as each unit in your case corresponds to 1% of the total bankroll.
How to maximise your profits?
The general thumb rule says that you should assign more number of units to bets wherein you see excellent value. If you already know how to work out odds of different betting events, this is the time to do it and then compare them against the bookmaker’s odds. It should also become the basis for your betting unit assignments. Ideally, the bigger is the difference between your and bookmaker’s odds, the more number of units you should assign. Here’s how you should go about it:
If the bookmaker’s odds are anywhere from 1% to 10% higher than your calculated odds, you must stake - 1 unit
If the bookmaker’s odds are anywhere from 11% to 20% higher than your calculated odds, you must stake – 2 units
If the bookmaker’s odds are anywhere from 21% to 30% higher than your calculated odds, you must stake – 3 units
If the bookmaker’s odds are anywhere from 31% to 40% higher than your calculated odds, you must stake – 4 units
If the bookmaker’s odds are anywhere from 41% to 100% higher than your calculated odds, you must stake – 5 units
Please note, these are only suggested figures and you are free to alter these bands depending on the specific market types you bet on. Perhaps you may never witness an edge higher than 20%, hence you can accordingly narrow down these bands; the decision is entirely yours. However, please note that you’ll rarely go wrong if you employ some tried and tested betting formula, and follow it religiously.
Never going bust
When you effectively employ a unit based bankroll management system, it would be impossible for you to go bust. There will never be a situation when you’ll run out of funds. Your stakes would increase with corresponding increases in your bankroll, but the swings would never be wild. Furthermore, you’ll always be able to cope up with losing streaks (which are inevitable).
We learnt how a good bankroll management system can shield you against swings, which are inevitable in any betting endeavour. Furthermore, such system can effectively increase your potential earnings as well.