Drawdown
What does "drawdown" mean in sports betting?
The drop from your bankroll's highest point to its lowest point before it sets a new high. It measures how deep a losing stretch went.
Every bettor has drawdowns, even ones with an edge. Knowing your largest one helps you set a unit size you can live with and a stop-loss that kicks in before a slump gets out of hand.
Measure it in dollars and as a percent of the peak. Smaller units mean shallower drawdowns for the same run of results.
Example
Your bankroll climbs to $620, then a cold stretch takes it down to $530 before it recovers. Your drawdown is $90, which is 90 / 620 = about 14.5% of the peak.
Related terms
Unit
A unit is a fixed slice of your bankroll, commonly 1% to 2%, used to size every bet so stakes stay consistent.
Bankroll
Your bankroll is the money set aside only for betting, separate from bills and savings. You size every bet as a share of it.
Stop-loss
A preset amount you can lose in a day, week or month. Hit it and you stop betting until the period resets.
Flat betting
Risking the same amount, usually one unit, on every bet instead of raising or lowering stakes based on feel or recent results.
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