The concept of bankroll management is quite simple, but it is also one of the most important concepts for gamblers. Overlooking it gives gamblers higher risks of ruin and may lead to serious financial and psychological problems. A bankroll is the entire sum of money you have set aside, especially for gambling in casinos or betting at the bookmaker platforms like TonyBet spilakassaleikir over a given period. So it is practically your gambling budget. The basic idea behind bankroll management is that you not just set a gambling limit for a month, but also set a sum of money for one gambling session (one unit). It is about the sum of money you can afford to lose during one gambling evening!)
What is the appropriate bankroll management? Well, it depends on your monthly budget and entertainment expenses. If you have a clear understanding of the idea of budget, then you understand that entertainment expenses are the expenses set aside from daily living costs (rent, grocery, personal supplies, pet food). You should never dig into daily living expenses if you don’t have enough money for entertainment. Speaking of bankroll, this principle also works, and according to the experts, it is reasonable to allocate 5% of your monthly entertainment expenses to gambling. You should also set a gambling limit for one play (one gambling session), it shouldn’t be higher than 2-5% of your monthly gambling budget (bankroll). Well, it must not be high because the goal of each gambler is to make the monthly bankroll last as long as possible and not to spend it in one evening. Managing your bankroll means you stick to it in any situation, whether you win or lose.
Bankroll management strategies
Professional gamblers and bettors use one of the different bankroll management strategies. One of the strategies is based on Kelly Criterion, the mathematical formula, which is used to define how much money to wager on each bet according to the monthly bankroll. The formula is as follows: a* = (bc – d)/b, where b means the odds of the wager, c, and d are the probabilities of winning and losing in the game. By the way, according to the Kelly Criterion, the perfect gambling unit is 5,5% of your monthly bankroll. The problem is, speaking of casino games it is very hard to find out the probability of winning or losing. Moreover, it is impossible if you play casino games based on pure luck (slots, Roulette). And there is also the probability of losing all your money. That’s why many bankroll management systems used in sports betting (Fibonacci, D’alembert, Oscar Grind bankroll management systems) are too hard to apply to playing casino games. For example, if you use the Oscar Grind system you increase your gambling unit after a win and decrease it after a loss. It may work in poker, but not in slots, where you can win and lose every time.
What works better than the Kelly Criterion or other bankroll management systems used in sports betting, is overestimating your bankroll according to changes in your monthly budget. Bankroll is a fixed sum of money but it is reasonable to analyze from time to time if you need to change it or not. It is also reasonable to change your staking plan (money allocated for one play) if you aren’t satisfied with it. So fixed bankroll is simple but as your financial situation always may change you should be ready to make some changes to it.
Bankroll management is one of the key things gamblers and bettors should know. It prevents you from losing too much money and being addicted to gambling. Whether you have a fixed bankroll or not, you should never exceed it. Even if you are on a winning streak, sticking to bankroll is a thing you should never forget.