Wont post where I got this article, but its a copy/paste deal. Nice read for those Newbies and Vets looking to make it for the long haul
Mike's 3-4-5 Rule:
I've used the 3,4, 5 rule of bankrolling since 1993 and I find it to be the single best way to bet sports. First lets assume your starting bankroll is $1000. What this means is your starting unit of betting should be 4% of your bankroll, or $40. You should continue to bet $40 units until that same $40 becomes either 3% of your bankroll, which means your winning, or 5% of your bankroll, which means you've hit a cold spell.
In this case if you hit a hot streak and win several units until your bankroll hits $1333 you will at this point readjust. i.e. 40/1333 = .03 or 3% ; your bankroll has grown so the $40 unit is now only 3% of your bankroll, time to adjust. 1333 X .04 = 53. $53 should be your new betting figure until that becomes either 3 or 5% or your bankroll.
Now suppose the worst and you have hit a cold streak. The 2pt conversion has cost you a few games and your bankroll has shrunk to $800. 40/800= .05 or 5% ; your bankroll has now shrunk to the point that you need to decrease
your bet size until good fortune turns your way. 800 X .04 = 32. $32 should be your new betting figure until that becomes either 3 or 5% of your bankroll.
No matter how experienced the handicapper hot and cold streaks are part of the game and when you hit the hot streaks increasing your bet slightly can be good, just as decreasing it when those dreaded cold streaks hit is vital. Using my 3,4, 5 rule you achieve this and avoid being wiped out when bad suck strikes, but continue to grow your bankroll and betting as the weight of time and winning picks carry you forward. I'll close by showing a more
detailed way of calculating.
1) Determine your bankroll, in my example $1000 but apply your own figure.
2) Multiply your bankroll by .04 to get your starting betting unit.
3) Start betting.
4) After every movement in your bankroll, divide your betting unit, $40, by the new size of your bankroll, $1140 (an example).
40/1140 = .0351 Still in the magic 3-5% range so no change.
If that number falls out of the 3-5% range time to adjust. i.e. new size of bankroll $1410.
1410/40 = .0284 time to readjust since this is under the 3% threshold.
1410 X .04(ideal number) = $56 ... your new betting unit.
Or in the case of a cold streak. i.e. new size of bankroll is $788
788/40 = .0508 time to readjust since this is outside of the 5% threshold.
788 X .04 = $32 ... your new betting unit.
Mike's 3-4-5 Rule:
I've used the 3,4, 5 rule of bankrolling since 1993 and I find it to be the single best way to bet sports. First lets assume your starting bankroll is $1000. What this means is your starting unit of betting should be 4% of your bankroll, or $40. You should continue to bet $40 units until that same $40 becomes either 3% of your bankroll, which means your winning, or 5% of your bankroll, which means you've hit a cold spell.
In this case if you hit a hot streak and win several units until your bankroll hits $1333 you will at this point readjust. i.e. 40/1333 = .03 or 3% ; your bankroll has grown so the $40 unit is now only 3% of your bankroll, time to adjust. 1333 X .04 = 53. $53 should be your new betting figure until that becomes either 3 or 5% or your bankroll.
Now suppose the worst and you have hit a cold streak. The 2pt conversion has cost you a few games and your bankroll has shrunk to $800. 40/800= .05 or 5% ; your bankroll has now shrunk to the point that you need to decrease
your bet size until good fortune turns your way. 800 X .04 = 32. $32 should be your new betting figure until that becomes either 3 or 5% of your bankroll.
No matter how experienced the handicapper hot and cold streaks are part of the game and when you hit the hot streaks increasing your bet slightly can be good, just as decreasing it when those dreaded cold streaks hit is vital. Using my 3,4, 5 rule you achieve this and avoid being wiped out when bad suck strikes, but continue to grow your bankroll and betting as the weight of time and winning picks carry you forward. I'll close by showing a more
detailed way of calculating.
1) Determine your bankroll, in my example $1000 but apply your own figure.
2) Multiply your bankroll by .04 to get your starting betting unit.
3) Start betting.
4) After every movement in your bankroll, divide your betting unit, $40, by the new size of your bankroll, $1140 (an example).
40/1140 = .0351 Still in the magic 3-5% range so no change.
If that number falls out of the 3-5% range time to adjust. i.e. new size of bankroll $1410.
1410/40 = .0284 time to readjust since this is under the 3% threshold.
1410 X .04(ideal number) = $56 ... your new betting unit.
Or in the case of a cold streak. i.e. new size of bankroll is $788
788/40 = .0508 time to readjust since this is outside of the 5% threshold.
788 X .04 = $32 ... your new betting unit.
