MONEY MANAGEMENT IN SPORTS BETTING
Maximize your sports betting profits with an efficient money management - we show you here, how it works. Many sports bettors know the problem: Even though you have the right itch and place successful betting tips you hardly make any profit in the long run. The problem: A wrong - or even worse - a lack of money management. We want to show you how you can make better sport bets profit with the help of established betting systems and the right calculation of betting stakes.
Content on this page
- Why is money management important and which guidelines need to be respected?
- How can the betting stakes be determined with money management betting strategies?
- 1. Money management with fixed betting stakes
- 2. Money management with dynamic betting stakes
- 3. Money management with units
- 4. Money management with progressive betting stakes
- 5. Setting the betting stakes with the help of the Kelly formula
- Bottom line: Which criteria are detrimental for successful money management?
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Why is money management important and which guidelines need to be respected?
Won bets don't automatically correspond with long term profit. This is mainly due to a haphazard selection of betting stakes. Additionally they are often too high. A lack of money management in sports betting is therefore a serious issue. So you should set a fixed betting budget, an amount that you solely use for sports betting. This amount mustn't be raised randomly and they are meant to serve as a self-control, because you always have an overview of your financial frame. In the following we want to present different money management betting strategies that aim at thoughtfully managing your betting budget. According to type of personality you will like or dislike the different systems. Always keep in mind: Every one of the presented system is better than using no system at all. Sports betting money management das two main goals: Maximizing profits and avoiding worst case scenarios - which means the total loss of your betting budget.
How can the betting stakes be determined with money management betting strategies?
Whether it's beginners, advanced bettors or experts - successful sports bettors have developed their preferred money management strategy that helps them make profits in the long run. They raise the core question: How high are the betting stakes supposed to be in order to make the maximum profit and to avoid a big loss? The question about the right betting stakes leads to many specific variations of known money management strategies, which we can't all discuss in this article. We want to present the most used betting systems though that all have their own advantages. There are also certain risks of course, which we also want to discuss.
1. Money management with fixed betting stakes
This money management system is also described as betting with "flat stakes". It's a very simple system, which is valued by many sports betting professionals due to its simplicity and the big security factor. Particularly important is trusting your ability to detect and calculate value bets! With this strategy a big part of the placed bets - so more than 50% - should be correct, if you want to bet on odds with a medium value of 2,00. So each bet should be considered well. First you should set the base stakes as a certain percentage of your available betting budget: Many experts believe that 1-2% are perfect. If you have a betting budget of a total of 1000 Euros and the base stakes are 1,5% of the budget, this would mean 15 Euros per betting tip. In order to show you the advantage of flat strakes we prepared a little example: You play 150 bets at 15 Euros each. For simplicity we take steady odds of 2,00. Now you take stock:
- 90 bets won
- 60 bets lost
- Betting stakes per bet 15 Euros
- Updated betting budget 1450 Euros
Let's say you raise your base stakes and take 1,5% of the "new" budget. In this case this would be 21,75 Euros. Now you play 150 bets again, but you are not as lucky anymore.
- 70 bets won
- 80 bets lost
- Betting stakes per bet 21,75 Euros
- Updated balance 1082,50 Euros
Would you have stuck with your initial base stake, namely 15 Euros, your betting budget would be 1200 Euros. That's 117,50 Euros more. Of course there is the same rate of success of 53,33% for both scenarios.
2. Money management with dynamic betting stakes
With this money management strategy the betting stakes always go by the current betting budget and are therefore constantly changing - and so we are talking about dynamic stakes. Once more we take a betting budget of 1000 Euros. You need to set base stakes at first again. With a benchmark of 2% of the total betting budget the stakes would be 20 Euros for the first bet. In our example you play the 20 Euros at odds of 2,50. Depending on whether you won or lost the bet you adapt the betting stakes for the following bet. Here an example for better understanding.
- Bet is won
20 Euros betting stakes | odds 2,50
New betting budget 1030 Euros
Next betting stakes 20,60 Euros
- Bet is lost
20 Euros betting stakes | odds 2,50
New betting budget 980 Euros
Next betting stakes 19,60 Euros
If you win the next bet again at stakes of 20,60 Euros, the new amount would be 21,22 Euros and so forth. In comparison to flat stakes it's difficult to make big profits in the long run with this strategy. Due to the fact that the stakes are being raised in the case of success with this money management system, the losses are automatically bigger if you lose a bet. Let's say that after 150 bets you won and lost 75 each. With flat stakes you would have generated a bigger profit in total. Dynamic betting stakes only pay off, when significantly more bets are won than lost. So the pressure on the sports bettor is higher, because lost bets have bigger consequences. Therefore we only recommend this system for professionals. For hobby players fixed stakes are clearly the better choice.
3. Money management with units
For this money management system a rating scale from 1 to 10 is being made. According to this scale the security of the respective bets is being rates. We therefore get 10 units. Once more we take a betting budget of 1000 Euros and once again you need to define the betting stakes. Each security level corresponds with certain stakes. If your personal maximum stakes per bet is 50 Euros, the smallest betting unit would be 5 Euros, which would be effective for unsure bets 1/10 and means 0,5% of the total betting budget.
- 1 | 5 Euros
- 2 | 10 Euros
- 3 | 15 Euros
- 4 | 20 Euros
- 5 | 25 Euros
- 6 | 30 Euros
- 7 | 35 Euros
- 8 | 40 Euros
- 9 | 45 Euros
- 10 | 50 Euros
For a bet that you rate with 6/10 with the help of the security scale, you would place stakes of 30 Euros for example. The primary goal of this strategy is to avoid a total loss and to develop a general risk awareness for sports betting. So what are the problems and dangers of this money management system, that hobby bettors should definitely be aware of? First of all it's the wrong rating of the security of the bets. An example: The bet is rated with a security of 7/10 at odds of 2,50, which means stakes of 35 Euros and therefore 3,5% of the betting budget. As mentioned experts recommend a benchmark between 1 and 2% though. Additionally the chances of winning the betting tip is only 40%. So we are clearly dealing with a miscalculation. This bet should be rated at 4/10 maximum. Another risk is losing favourite bets that are being played with 10 units and therefore very high stakes. Many sports bettors feel obligated to make up for a loss as fast as possible. Usually mainly "sure" bets with high stakes are being played with this system and the necessary balance of odds or value bets with higher odds are being neglected. Another source of danger is to take 1% of the betting budget for the lowest step, which means that the highest unit is 10%, which would be fatal.
4. Money management with progressive betting stakes
Usually this money management strategy deals with bets with loss progression. The following scenario is meant by this: In the case of a loss the lost stakes are supposed to be made up with a set raise of the base stakes percentage-wise and therefore a steady profit is supposed to be generated. If a bet is won, the bettor starts with the set base stakes again. Here an example with base stakes of 10 Euros and a 100% raise of stakes in the case of a loss:
- 10 Euros, odds 2,50 | lost | 10 Euros loss
- 20 Euros, odds 2,50 | lost | 30 Euros loss
- 40 Euros, odds 2,50 | lost | 70 Euros loss
- 80 Euros, odds 2,50 | won | 50 Euros net profit
The risk of this betting strategy is obvious: 150 Euros have been played before a bet was won. So the betting budget can be drained faster than you may think with this system. Until the profitable bet occurs, the betting account may be empty in the worst case. Therefore it is recommended to choose low one digit base stakes and not to raise the stakes by 100% in the case of a loss at odds of more than 2,00. With average odds of 3,00 50% for example are more than sufficient. This way you make sure that you can use money management with progressive raise of stakes over a longer period of time too. We dealt with loss progression in sports betting extensively and recommend the following two articles:
5. Setting the betting stakes with the help of the Kelly formula
In the field of sports betting Kelly is known as a very sophisticated system, which calculates the optimum betting stakes in consideration of the calculated chances of value bets. One important tip: We recommend the "Fractal Kelly Strategy". With this strategy you only place a certain fracture of the betting stakes that the Kelly formula suggests. You can find out everything you need to know about this money management system here:
Bottom line: Which criteria are detrimental for successful money management?
First of all you need to predict the outcomes of betting events correctly and better than certain bookmakers in sports betting. We summarized for you how you can calculate the value of sports bets and how you can detect value bets:
In the next step you should choose one of many money management systems or a personally modified one. It's important that you generally count on one strategy and stick to it too. The presented betting systems should not be thrown overboard in any case after a short period of time or cluelessly be combined with each other. The top priority is: Be patient. After all these are all strategies that promise success in the long run and they are not supposed to get you quick money with a lot of risk. A reflected sports betting money management gives you steady profits and avoids the total loss of your betting budget. Additionally it's supposed to raise awareness that betting stakes should always be well considered. Placing excessive betting stakes and frustration bets are supposed to be avoided at all. Be kind and trust the proven efficiency of money management systems.