Even a genuine long-term edge can be wiped out by poor stake sizing. Bankroll management is what separates disciplined bettors from gamblers.
Two bettors can have identical edges and identical results — one survives a losing streak and compounds profit, the other goes broke betting too large. Stake sizing, not selection skill alone, determines whether an edge translates into long-term survival.
Decide on a fixed amount of money set aside purely for betting — separate from rent, bills, or savings. Never chase losses by adding funds outside this bankroll mid-session.
Bet the same amount (or same % of bankroll) on every wager, regardless of confidence level.
Pros: Simple, predictable, low risk of ruin. Cons: Doesn't account for varying bet quality/edge size.
Stake a fixed percentage of your current bankroll rather than a fixed dollar amount — meaning your stakes shrink automatically during a downswing and grow during an upswing.
This naturally protects against ruin since stakes never exceed the available bankroll, but recovery from a downswing takes longer in absolute terms.
The mathematically optimal staking method when you have an accurate edge estimate — sizes each bet according to both your edge and the odds offered. See our dedicated Kelly Criterion guide for the full formula and worked examples.
| Plan | Complexity | Risk of Ruin | Best For |
|---|---|---|---|
| Fixed Stakes | Low | Low (with 1-2% rule) | Beginners, casual bettors |
| Proportional % | Medium | Very Low | Long-term bankroll builders |
| Kelly / Fractional Kelly | High | Low (if edge estimate is accurate) | Bettors with proven, measurable edges |
Use our free Kelly Criterion calculator — enter your estimated probability and the available odds to get full, half, and quarter Kelly stake sizes for your bankroll.