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Bankroll Management: Staking, Units, and the Kelly Criterion

1 min read · 7/14/2026

Edge without discipline goes broke

Even a genuine +EV bettor can lose their entire bankroll by staking too much on each bet. Bankroll management is how you turn an edge into realized profit.

Units, not dollars

Track everything in units — typically 1% of your bankroll. A "3-unit" bet is three percent of your roll. This normalizes performance across bankroll sizes and is exactly how Overlay records tipster stakes.

The Kelly criterion

Kelly tells you the growth-optimal fraction to stake given your edge:

f = (b * p - q) / b

where b = odds - 1, p = true win probability, q = 1 - p.

Because your probability estimates are noisy, most pros bet quarter- or half-Kelly to cut variance. Smaller, steadier, still growing.

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