Kelly Criterion & Points Bankroll Management Strategies In Sports Betting
The most significant and profitable aspect of sports betting is bankroll management, often called money management. Regardless of how experienced you are at choosing the winning sports picks, if your money management is not correct, you are, probably, taking higher betting risk than you can afford.
For example, your bankroll amount is $2,000, and from them you need to select the best sports odds and your stake for every single wager you do. You may decide to risk the entire bankroll amount at once, or to stake lower $100–200 per wager. If this is the case, and you are likely to gamble with such risky amounts, you are going to get busted very quickly.
In this article we will describe the best bankroll management strategies in sports betting, in order to prevent you losing cash and boost your winnings- the Kelly Criterion and the Points Method.
The Kelly Criterion- Bankroll Management Strategy
The Kelly Criterion method, used in sports betting for professional wagers, is a quite complicated bankroll strategy where the betting amount is calculated by a formula. The Kelly Criterion is famous among professional gamblers and bet advisors as a way to decide how much to stake when using the best odds. Most of them use and recognize the simple variation of it.
The Kelly formula:
[(Winning Probability x(decimal odds-1) ) — Losing Probability] : (odds-1).
For example, you guess that the Golden State Warriors have a 60% of winning the game and the odds are 2.00.
So the calculation is:
[(0.60 x 1)-0.40] / (2–1)
0.15/1 = 0.15
Meaning that the Kelly Criterion suggests you should spend 15% of your bankroll amount.
Some of the disadvantages in using the Kelly Criterion for sports betting are that the method works only for placing single bets. Its usage for multiples is not recommended.
If your bankroll is limited, you may find better favor in using just a certain percentage of the Kelly suggested amount, which will be a much safer move for your wallet.
Other disadvantage of the Kelly Criterion is that it is all about the correct prediction of the winning and losing percentages of every sport match. In other words, using Kelly is related with high predicting accuracy.
Let’s have a look now on the Points Method in Sports Betting bankroll management.
The Points System- Sports Betting Bankroll Management Strategy
The Points method represents the idea that a punter simply multiplies the stake at to the points system to find how much they may lose or win. The points system is a reliable betting strategy, that guarantees self-discipline and money management. The points’ rate depends from the winning and losing probabilities of the selected sports betting odds, mainly as a 1 to 10 scale, or 1 to 5. In every betting website, betting experts, professional handicappers, bet advisors and tipsters use very often the Points System to suggest the best sports tips at the best betting odds.
Firstly, we need to decide how many points to assign to a certain bet. The five-point wagers should be the smallest amount of bets, and the one-point wagers, respectively, the biggest, so if on a selected sports season, a bettor has 200 wagers, his points system may look like below:
1 point 100 bets
2 points 50 bets
3 points 25 bets
4 points 15 bets
5 points 10 bets
After setting the points for the betting system, a smart punter should convert it into real-cash percentage of the total bankroll. For example, a total bankroll of $2,000 will have a majority of wagers $20. The points may be used also as real cash amount. For instance, you may assign each point to be equal to $5, in order to keep a better vision of the accounting of your cash.
The benefit of this betting system is that you have a control over your wagers, so it will be almost impossible to get busted by losing all. The only difficulty you may face is that if you are constantly on a losing streak, some bookmakers may not accept your few cents wager.
Over the passing time, your bankroll will grow and your sports betting success will be guaranteed.
Sports Betting Bankroll Management Strategies — Conclusion
Both methods may work well for sports bettors. The betting strategies eliminate the risk for your bankroll through discipline, patience and calculation. Choose a bankroll management service, if you need a personal plan for success in sports betting.