Monthly resize and drawdowns

A unit is a percentage, so it has to be updated. The question is how often.

Our rule: 1u is 1% of bankroll, reset on the first of each month from the actual bankroll.

Example only:

• Bankroll $1,000. 1u is $10.
• A good month takes it to $1,100. Next month 1u is $11.
• A bad month takes it to $900. Next month 1u is $9.

Why monthly and not daily:

• Resizing up after a hot day is a quiet way of chasing a feeling.
• Resizing down after every loss makes the record impossible to read.
• A month is long enough to smooth the noise and short enough to protect the bankroll.

A drawdown is a drop from a high point. Every bettor has them. Sizing in small units is what keeps one from ending the project.

What we do when one hits: if we are down 10u in a week, the next slate starts with a review before any new play. Was it variance, or did we break our own rules? The answer decides what changes, if anything.

Where it shows up in our plays: "1u = 1% of your bankroll" sits at the top of every slate. Your unit is yours, not ours.

What cuts against it: resizing protects you from ruin. It does not turn a losing process into a winning one.

Education only, not a guarantee. Bet only what you can afford to lose. 1-800-GAMBLER.