Just like in any casino game, there are only two constant factors that signify proper bankroll management which is House Edges and Volatility of the casino game. For most players, house edges or advantages refers to the influence of the casino table over any player, and this is also one of the sources of income for the casino. With that being said, the house edge is the most standard bankroll management which is why this topic will be focused more on the volatility aspect of a casino game.
European Roulette Volatility
This refers to the distribution of payouts in a casino game. The best way to explain the term is to pair it up with the European Roulette because the payout rates will remain constant for any style of betting while the volatility varies from wager to wager. For instance, if a player will make a bet on the red, the odds will be 18 winning numbers versus 19 failing ones which will have an even benefit for any player because this can assure that there are no long losing and winning streaks. This will also apply with straight up bets even with the 1 is to 37 winning ratio because the edge is constant.
The volatility only applies to the possible winning or losing streaks in the next round. The higher the volatility percentage, the higher the requirement of bets are needed regarding securing a win. For example, having a $100 bankroll and making $1 bets in a low volatility round will require the player to make $0.25 bets or in that range to maintain the bankroll in higher volatility. The secret to this management technique is to balance the risk potential with the volatility rates.
This aspect also applies to slot machine games, especially with the progressive slots. Seasoned players tend to have the betting range in the lower rates because of the small to medium payouts in the game. This is done to maintain any possibility of either securing a winning streak or stopping a losing one. This is also applicable to the low volatility slot games because players will get higher coin values and still benefit from the balanced payout of the match. The risk of playing in any low volatility game will remain the same, but this strategy will allow the players more room when it comes to betting ranges. This will give players the chance of enjoying a slow and fun game even with a limited budget.
