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Cross-sport edge distribution

Markowitz-style portfolio allocation across sports with different edges

Optimal bankroll allocation across sports with different edge levels — Markowitz-style portfolio math for bettors.

SportEdge %Variance Optimal allocationAmount
%
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%

Why distribute across sports

Putting your entire bankroll into one sport means high variance. Distributing across uncorrelated sports reduces drawdown without sacrificing much edge — same principle as stock portfolio diversification. The math weighs each sport's edge against its variance to find optimal allocations. Pair with Kelly criterion for per-sport stake sizing and Drawdown calculator for portfolio-level risk.

See also: Kelly criterion, Drawdown calculator, Account reload optimizer

How to use

  1. 1Add sports with your verified edge % and variance level.
  2. 2Enter total bankroll.
  3. 3See optimal % allocation per sport.

Example: 3 sports portfolio

Football: 3% edge, medium variance. Tennis: 1.5% edge, low variance. MMA: 2.5% edge, high variance. Bankroll €5k. Optimal split: Football 50% (€2500), Tennis 35% (€1750), MMA 15% (€750). MMA gets less despite higher edge because variance is too high — diversification reduces drawdown.

When to use

  • When you have verified edges in 2+ sports
  • Rebalancing bankroll allocations quarterly
  • Comparing portfolio vs single-sport approach

Frequently asked questions

What is the Cross-sport edge distribution calculator?

Putting your entire bankroll into one sport means high variance. Distributing across uncorrelated sports reduces drawdown without sacrificing much edge — same principle as stock portfolio diversification.

How does the Cross-sport edge distribution calculator work in practice?

Football: 3% edge, medium variance. Tennis: 1.5% edge, low variance. MMA: 2.5% edge, high variance. Bankroll €5k. Optimal split: Football 50% (€2500), Tennis 35% (€1750), MMA 15% (€750). MMA gets less despite higher edge because variance is too high — diversification reduces drawdown.

When should I use the Cross-sport edge distribution calculator?

When you have verified edges in 2+ sports. Rebalancing bankroll allocations quarterly. Comparing portfolio vs single-sport approach.