Bankroll Management: Complete Guide to Building and Protecting Your Bankroll
Master bankroll management. Learn unit sizing, variance management, and how to protect your betting funds long-term.
Quick Answer: What Is Bankroll Management?
Bankroll management is protecting your betting money through strategic sizing, variance control, and disciplined limits. It’s the difference between casual gamblers (who bet whatever they feel like) and professional bettors (who follow a system).
Reality check: Good bankroll management won’t make you a winner. Bad management will make you a loser faster.
The 1-3% Rule: Never Risk More Than You Can Afford
Defining Your Bankroll
Your bankroll should be:
- ✅ Money you can afford to lose (rent, bills, food are separate)
- ✅ Dedicated gambling funds only
- ✅ A separate account from your daily spending
The Golden Rule
Maximum Single Bet = Bankroll × 1%
Maximum Daily Loss = Bankroll × 3%
Maximum Weekly Loss = Bankroll × 10%| Bankroll Size | Max Single Bet | Max Daily Loss | Max Weekly Loss |
|---|---|---|---|
| $100 | $1 | $3 | $10 |
| $500 | $5 | $15 | $50 |
| $1,000 | $10 | $30 | $100 |
| $5,000 | $50 | $150 | $500 |
Why 1-3%? Sports betting has high variance. Even skilled bettors have 50% win rates. Small bet sizes protect you from ruin when variance hits bad.
Unit Sizing: How Much to Bet per Wager
A “unit” is 1% of your bankroll—your standard betting amount.
Standard Unit Sizes
| Bankroll | 1 Unit | 1/2 Unit (Conservative) | 2 Units (Aggressive) |
|---|---|---|---|
| $100 | $1 | $0.50 | $2 |
| $500 | $5 | $2.50 | $10 |
| $1,000 | $10 | $5 | $20 |
| $5,000 | $50 | $25 | $100 |
When to Adjust Units
| Situation | Action |
|---|---|
| Bankroll grows 20%+ | Increase units by 20% |
| Down 30%+ | Decrease units by 20% |
| On major losing streak | Drop to 1/2 units until recovered |
| Consistently winning | Consider 1.5-2x units (increase slightly) |
Mistake to avoid: Increasing bet size after wins (“I’m running hot!”). This is how casual bettors lose all profits.
Variance: Why You’ll Lose (Even When Good)
What Is Variance?
Variance means natural statistical swings in betting outcomes. In the short term, results can look wildly different from long-term expectations.
Example with 52.4% win rate (beating -110 vig):
| Bets | Expected Wins | Possible Losses | Variance Range |
|---|---|---|---|
| 100 bets | 52 wins | 48 losses | 35-65 wins |
| 1,000 bets | 524 wins | 476 losses | 480-560 wins |
The reality: In any 100-bet stretch, you could have 35 wins (running hot) or 65 losses (ice cold). Neither proves you’re good or bad—it’s just variance.
Handling Losing Streaks
The Math of Losing Streaks
With a 52.4% win rate, here’s the probability of streaks:
| Streak Length | Probability | How Often |
|---|---|---|
| 3 losses | 13.6% | 1 in 7.4 attempts |
| 5 losses | 6.0% | 1 in 16.7 attempts |
| 7 losses | 2.7% | 1 in 37 attempts |
| 10 losses | 1.0% | 1 in 100 attempts |
Key insight: Even winning bettors face 10-loss streaks about 1% of the time. If your bet size is too big, you’ll go broke before variance evens out.
Losing Streak Strategy
When you’re down 7-10 bets in a row:
- STOP (no “one more to get even”)
- Drop to 1/2 units (or stop entirely for the day)
- Review recent bets (was there a pattern? bad odds? tilt?)
- Only resume at 1/2 units after a winning bet
- Do not increase units until bankroll recovers
Win Streaks: The Hidden Danger
Don’t Increase Units After Wins
| What You Want to Do | What Actually Happens |
|---|---|
| Increase bets after win | Feeds into variance, higher chance of big loss |
| Keep bets same | Preserves bankroll, controlled risk |
Professional approach: Fixed unit sizes regardless of wins or losses. This prevents emotion-based decisions.
Withdrawal Strategy: Taking Profits vs. Grinding
The 50% Rule
When you’re up 50% on your bankroll, withdraw some profits.
| Starting Bankroll | +50% Point | Withdrawal | Remaining Bankroll |
|---|---|---|---|
| $500 | $750 | $250 | $500 |
| $1,000 | $1,500 | $500 | $1,000 |
| $5,000 | $7,500 | $2,500 | $5,000 |
Why withdraw? Locks in profits, prevents “giving it back” through bad variance. You can always deposit again.
The 100% Rule (Bankroll Doubling)
When you double your bankroll from starting point:
- Withdraw original stake (your “seed money”)
- Keep playing with profits only
- Or increase units (after sustained success, not one hot streak)
Tracking: Why It’s Non-Negotiable
You can’t manage what you don’t measure.
Essential Tracking Data
| Data Point | Why It Matters |
|---|---|
| Date & time | Identify tilt patterns (betting when upset?) |
| Sport & league | Track what you’re good at vs. struggling with |
| Bet type | Moneyline vs. spread vs. total—what works? |
| Odds & stake | Calculate actual returns vs. expected |
| Win/loss | Reality check on your performance |
| Reasoning | Prevent “just felt lucky” bets |
Simple Spreadsheet Template
Date Sport League Bet Type Odds Odds Odds Stake Result P/L Notes
(American) (Fractional) (Decimal)
1/30/26 NFL AFC Spread -4.5 10/11 1.91 $10 Win +$9.09 Good research
1/30/26 NBA East Over +210 21/10 3.10 $15 Loss -$15 Chasing? No
1/31/26 Soccer PL ML +150 3/2 2.50 $5 Pending — Team form check30-day review: Review your spreadsheet monthly. Calculate ROI, win rate, and whether you’re beating the vig.
Advanced: Kelly Criterion (Optional)
Kelly formula calculates optimal bet size based on your edge.
Kelly % = (Edge ÷ Odds)
Edge = True Probability - Implied ProbabilityExample Kelly Calculation
| Scenario | True Prob | Implied (at -110) | Edge | Kelly % | With $1,000 Bankroll |
|---|---|---|---|---|---|
| 54% win rate | 54% | 52.4% | 1.6% | $16 | |
| 56% win rate | 56% | 52.4% | 3.6% | $36 |
Kelly bet calculation:
- Bankroll: $1,000
- True probability: 56%
- Implied probability: 52.4% (at -110 odds)
- Edge: 56% - 52.4% = 3.6%
- Kelly: 3.6% ÷ 1.91 (decimal odds) = 1.89%
- Recommended bet: $1,000 × 1.89% = $18.90
Full Kelly is aggressive: Most bettors use 1/4 or 1/2 Kelly. Full Kelly maximizes growth but increases risk of ruin during variance.
Common Bankroll Mistakes
| Mistake | Why It’s Bad | Fix |
|---|---|---|
| Betting beyond means | Money for rent/food | Separate accounts, never mix |
| Chasing losses | ”Double down to recover” | Stop at daily loss limit, walk away |
| Increasing bets after wins | ”I’m hot” | Fixed units, regardless of streaks |
| No tracking | Guessing performance | Spreadsheet required for any serious betting |
| Ignoring variance | ”Must be rigged” after 5 losses | Variance is math, not conspiracy |
| Betting on everything | 5-6 bets/day on unknown sports | Specialize, know your edge |
Summary
Bankroll management isn’t glamorous—it’s boring discipline. Fixed unit sizes, the 1-3% rule, and tracking every bet separate professionals from amateurs.
The math:
- 1-3% max per bet
- Stop when down 20-30% (variance protection)
- Withdraw at +50% (lock in profits)
- Track everything, review monthly
The reality: Most people who lose at betting don’t understand variance. They bet too big, chase losses, and stop tracking. Good bankroll management doesn’t prevent losses—but it prevents going broke when they’re inevitable.
Your bankroll is your betting business capital. Treat it with respect, or treat betting as pure entertainment with no plan.
If you can’t follow these rules, sports betting isn’t for you. There’s no shame in walking away.
