Sports Betting University

12 min · Free

Bankroll management and unit sizing

The single discipline that decides whether you survive variance.

A bankroll is money you have consciously set aside and can afford to lose entirely. Never rent, savings or borrowed money. If losing it changes your life, the amount is wrong.

A unit is a fixed fraction of that bankroll — commonly 1%. Flat staking one unit removes the biggest cause of blow-ups: chasing losses with bigger stakes.

Fractional Kelly (a quarter or a half) is more advanced, and it depends entirely on your probability estimate being honest. Overconfident inputs make Kelly dangerous, which is why full Kelly is almost never appropriate.

Write down a stop-loss before you start: a figure at which you stop for the week, no exceptions. The Crypto Richie bankroll tracker warns you when you cross the limit you set for yourself.

Key points

  • One unit is typically 1% of a bankroll you can afford to lose.
  • Flat staking protects you from chasing.
  • Set the stop-loss before the first bet, not during a losing run.

Quiz

Score 70% or better to pass this lesson.

1. On a $2,000 bankroll with 1% units, one unit is…

2. Why is full Kelly rarely appropriate?

3. Which money belongs in a bankroll?

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