Bankroll Management in Daily Fantasy Sports
In the following article you’ll see a guide as to how you might manage your investment in daily fantasy sports. Firstly you’ll see how a professional might look at their daily investment, moving on to how playing for fun should also incorporate bankroll management, and how it can be made more interesting.
Bankroll Management in Daily Fantasy Sports – Professional Approach
In this article, I would class a professional player as someone who wants to make a regular profit and has an edge in daily fantasy sports – the profit might be a small regular monthly profit, possibly a second income or even for the most serious, a full time career.
A professional player will have a very good idea of what their expected return on investment is each time they enter a daily money tournament, and because of this they can make a prediction of what they would expect to win in a given day, week, month or year. Over a year they might expect to be somewhere close to their initial prediction, but over the shorter time frames they will hit a lot more ups and downs – and would expect to have many days, weeks or even months when things have gone badly and they are looking at red numbers.
To deal with the ups and downs, they would have a bankroll that is large enough to cope with the losing runs. The size of the bankroll would vary as to how aggressive the professional might want to be, but a bankroll of at least 100 buy-ins would be around a minimum for the serious player, some players having much more than that. The size of the bankroll would also take into account the types of games played – a head to head player may have less buy-ins than this, a regular player of large entry tournaments may want more buy-ins.
As an example, a player may have a bankroll of $1000, and has a buy-in requirement of 100 buy-ins – this player would only enter a tournament for $10 or less. The good news is that regardless of which sport you choose to play, there are leagues available for all budgets, small and large.
Knowing what their winning expectation is, the player can make a monthly withdrawal based on that figure REGARDLESS of whether they have had an amazing month or a month where everything that could go wrong did go wrong. They may make the withdrawal figure slightly less than their expected monthly profit, so as to let their bankroll grow as well – which should mean larger profits in the future.
Bankroll Management in Daily Fantasy Sports – Casual/Fun Approach
Many players in daily fantasy sports will go through a regular process of depositing, playing some games – depositing again if they lose, or playing higher stakes if they win until they lose again, which means having to deposit again. This cycle suits both the site itself as they are making regular money from these players, and it suits the professional players, as these are the people who are paying their “wages”.
To change this situation this player might want to adopt some bankroll management – which will make the bankroll last longer for the player who is still learning how to gain that edge, and will indeed see the bankroll grow for the decent casual player. However, the casual player may get bored sticking to the stringent guidelines that the professional employs, where “taking a shot” at a big win for higher stakes than normal wouldn’t be allowed.
A bankroll requirement of around 30 buy-ins would be a good amount for the more casual player – this should ensure that you don’t go broke, and if you do find your bankroll growing, maybe consider making this figure higher, so as to become more in line with the professional approach.
With regards to taking a shot at higher buy-ins – it’s not something that you should generally do, but once in a while it might not be a bad idea, just to change things up a bit, especially if you are getting itchy feet. Maybe, once a month, double the amount of your usual buy-in, or a better idea might be to take a one-off shot after a particularly good night. As an example, you might normally buy-in for $5, but you just had a $90 win – as a one off here, a shot at a $20 buy-in would be an OK way to go. If you use a bit of common sense, and don’t put your bankroll at risk, then playing for higher stakes once in a while is not a big problem.