How Much is 1 Unit?
A standard rule of thumb is that 1 unit should be 1-2% of your total bankroll. The percentage can vary depending on your risk tolerance, but here's a breakdown of how this works:
1% Unit Size: If your bankroll is $1,000, then 1 unit = $10. This is considered a conservative approach, suitable for those who want to minimize risk.
2% Unit Size: If your bankroll is $1,000, then 1 unit = $20. This is a slightly more aggressive strategy but still helps to manage risk.
The idea is that, by risking only 1-2% per bet, a series of losing bets will not decimate the bankroll. For example, with a 1% unit size, even if you lose 10 consecutive bets, you would lose 10% of your bankroll, leaving you with $900 to continue wagering.
Adjusting Unit Size
As your bankroll fluctuates—either growing from a series of successful bets or shrinking from losses—you will adjust your unit size accordingly. For instance:
If your bankroll increases from $1,000 to $1,200, you may choose to increase your unit size (e.g., moving from $10 to $12 if you were using 1%).
If your bankroll decreases, you would reduce your unit size to protect the remaining funds.
This flexible system ensures that the unit size always corresponds to the current size of the bankroll, protecting the bettor from catastrophic losses while still allowing for growth.