Bankroll Management

Bankroll Management

Strategy

Definition

The practice of sizing and planning bets to preserve one’s betting funds and reduce the risk of ruin. Good bankroll management involves betting only a small percentage of your bankroll per wager, adjusting stakes as your bankroll grows or shrinks, and avoiding chasing losses.

Formula

Common rule: bet 1–5% of bankroll per play (e.g., fixed-unit or Kelly criterion adjustments).

Example

Using **bankroll management**, a bettor with \$1,000 might bet \$20 (2% of bankroll) on each fight rather than, say, \$300 on one fight. Even if a few bets lose in a row, the bettor has funds to continue. This strategy prevents going broke during downswings and keeps betting sustainable.