Money management in sports betting

Money management in sports betting

Any experienced player knows that you cannot bet at random, this is a sure way to lose your bankroll. To prevent this, you need not only to analyze the matches, but also to understand how to manage the bank. Money management (or, as it is also called, bankroll management) in sports betting allows you to determine the amount of the bet depending on the situation, and the dynamic bank does not allow you to quickly lose all the money even with a losing streak. We will talk in more detail about how all this works in our article.

Money management in sports betting

What is a dynamic bank

Experienced players calculate the bet amount based on the size of the bankroll, which changes after each bet. And here comes the division: for some strategies a static bank is used, for others – a dynamic one.

With the static one, everything is simple: the player divides the bank into a certain number of bets in advance and does not change the bet amount regardless of winning or losing. A clear disadvantage of this approach lies in the fact that a series of failures can easily rob the bettor of all the money.

But with a dynamic bank it is more interesting: the player recalculates the bet amount every time after the bet is made. A clear plus is the protection from an unsuccessful line, which will not help to quickly drain the entire bank. If the bettor wins, the bet amount increases; if the bettor loses, it decreases. The only limitation can be the size of the minimum bet at the bookmaker, but usually there is no problem with this, because the minimum wages are already low.

How to calculate the bet amount

So, we already know that a dynamic bank helps to save as much money as possible during a losing streak, but how exactly do you calculate your stake?

All this is individual and depends on the player, but there is a universal formula that is suitable for most cases: B * (R * (1 – (V * (1 – (C – 1) * 0.05))), where:

  • B – the size of the bankroll;
  • R – the degree of risk (usually slightly more than 0, for example, 0.00005);
  • V – the probability of passage (from 0 to 100%);
  • C – confidence that the bet will win (in contrast to the V indicator, a 4-point scale is used here: 1 – it will pass for sure, 4 – unlikely).

The player calculates all parameters independently and, on their basis, forms an individual bet size depending on the bankroll.

And in order to understand whether the rate is profitable or not, it is recommended to use the following formula: K * V * (1- (C-1) * 0.05), where:

  • K – bookmaker coefficient;
  • V – the probability of passage;
  • C – confidence in the passage of the bet.

If the result is higher than one, the rate can be called profitable, if it is lower, it is worth looking for something else.

Why is it important to be able to manage a bank

The ability to manage your bankroll competently is one of the most important in the arsenal of a professional player. This is how inexperienced beginners often differ from seasoned bettors.

Even if you are good at analyzing matches and choosing the right outcomes, mistakes will still happen, and not so rarely. To prevent failures from affecting the final bankroll and leading to losses, it is important to set fixed amounts that will help prevent a crash even if a series of bets is unsuccessful.

If we are talking about beginners or inexperienced players, for them the ability to manage the bank is even more important, because it will help not to lose all the money ahead of time and not be left with zero on the balance sheet.

It was not uncommon for beginners to quickly lose the starting pot, and then get frustrated and throw bets. And it happens even worse: after losing the first pot, the player replenishes the account and loses again, and then again and again. The ability to manage your finances allows, if not to completely protect yourself from such scenarios, then at least to reduce their probability to a minimum.

Major mistakes beginners make

In order not to repeat the mistakes of other players, we recommend that beginners familiarize themselves with the most common ones:

  1. Whole pot rate. Any professional gambler will say that there are no sureties, no outcome can be one hundred percent, which means that you should never bet the entire bankroll amount at once. This is especially destructive after a loss in an attempt to recoup. In this case, it is no longer a game, but a lottery, where luck is more decisive than the knowledge of the player.
  2. Bets are too big after winning. Often, after one or several victories in a row, players begin to believe too much in their knowledge and luck and bet large sums of money. As a result, you can not only deprive yourself of profit from previous winnings, but also enter into a negative.
  3. Breaking the strategy. Strategy bets should be clearly thought out in advance and there is no need to retreat in full swing. If you decide to make a certain series of bets according to the “Catch-up” strategy, in the event of several failures in a row, you do not need to switch to something else, play to the end, as you originally intended.
  4. Disregard for statistics. Many beginners either do not keep statistics of their game at all, or do not pay due attention to it. And in vain, experienced bettors know that statistics are very important and you need to keep it in a computer, and not try to keep it in your head.

In conclusion, we want to remind you once again: stick to the rules that you have developed for yourself, do not change them unnecessarily, and do not forget about discipline.

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