Bankroll Management Rules (BMR)
The first thing you need is a starter roll. It is up to you how much your starter roll is and this will affect all other aspects of BMR. Whatever you decide make it affordable. If you start with an amount that you find easily replaceable you can ignore BMR temporarily while you go all out to build your bankroll. However you must remain disciplined. Set yourself a level where BMR will kick in and once it does stick to it. Discipline is key to any hopes of returning a steady profit. We have set ourselves some rules and we have stuck to them meaning our Bankroll has increased steadily month on month.
1) Bet Sizing – My STANDARD BET SIZE (SBS) is 2% of our NOTIONAL ROLL (NR). Having started with a NR of £500 my SBS was £10. I often double my bet to 4% for Banker Bets or 5% where I see excellent value. Under no circumstances should you ever expose more than 20% of your entire bankroll.
2) Notional Roll – Convention suggests that you should be able to increase the size of your SBS as and when your ACTUAL BANKROLL (ABR) increases. This means that your SBS would vary greatly on a day-to-day basis depending on success/failure rates. I learned the hard way that this leads to problems. The hardest thing to do after increasing a SBS is lowering them again after a bad run. So if you increase your stakes regularly and try and keep the bankroll/betsize ratio fluent you will lose discipline and end up betting outside of bankroll limitations. Hence the idea of the NOTIONAL ROLL. The NR rule basically means that you maintain your bankroll at a notional value until you reach a MILESTONE where you can safely increase your SBS based on ABR + CONTINGENCY.
3) Contingency – When deciding to increase your SBS after hitting a new NR milestone it is vital that you place a contingency value on your ABR in relation to your NR. My contingency value is 20%. This means when I increase my SBS based on ABR + CONTINGENCY values allowing me to move to the next level of my NR I will have 10 bets that can go wrong before I would need to drop my SBS and NR because of slipping below my NR level with my ABR. Once your ABR drops below NR you must drop your SBS in relation to your previous NR. There is no worse feeling than having to drop your SBS/NR (other than going broke) so do not override your contingency. It is a failsafe designed to help.
4) Milestones – These are pre-determined values of ABR where you decide to increase your NR and SBS. It is entirely up to you what increments you wish to increase your NR and SBS at but do work it out before hand. It helps with maintaining discipline.
|SBS||NR||Contingency @ 20%||ABR|