How many times you cycle through your bankroll over a period. Higher turnover with positive edge means more total profit.
Bankroll turnover measures how many times your total bankroll is wagered over a given period. A $1,000 bankroll with $5,000 in total bets has 5x turnover.
Turnover is a hidden multiplier on returns. A 3% edge with 50x annual turnover produces much more profit than a 10% edge with 5x turnover. This is why high-volume strategies (arbing, low-margin grinding) can be more profitable than selective high-conviction bets.
Prediction markets have lower turnover than sportsbooks because contracts can take months to resolve. Short-duration contracts and early exit strategies increase turnover.
turnover = totalAmountWagered / bankroll totalProfit ≈ bankroll × edge × turnover
$1,000 bankroll, 3% average edge, 20x annual turnover: estimated annual profit = $1,000 × 0.03 × 20 = $600 (60% return).
The total amount of money set aside exclusively for betting or trading. Never money you can't afford to lose.
Expected Value (EV)The average profit or loss per bet if you made the same wager thousands of times. Positive EV means long-term profit.
Kelly CriterionA formula for optimal bet sizing that maximizes long-term bankroll growth based on your edge and the odds.