Quote Originally Posted by JamezD_HI:
Appreciate the discussion and analysis. But as you're aware, that 14.55% is a raw number. On an annualized basis, the standard for comparison purposes, since the result is for a one-week period, would need to be multiplied by roughly 50.
So, the real, annualized ROI is closer to 700%, right?
Which it frankly should be, given the amount of risk being borne and managed on a near-daily basis for an extended peiod of time.
No that's not correct and I will use a 6 month sample size because that's about how long the MLB season is. A 6 month span (26 weeks) would roughly look something like this using the numbers in my previous example:
AVERAGE "JOE PUBLIC" BETTOR
Average line: $110 to win $100
Amount per play: $110
Amount of 6 month bets: 520
Win/Loss record: 312-208
Win percentage: 60%
Total amount wagered: $57,200
Total NET profit: $8,320
ROI (Return on Investment): 14.55%
MY BANKROLL
Average line: $110 to win $100
Amount per play: $550
Amount of 6 month bets: 130
Win/Loss record: 78-52
Win percentage: 60%
Total amount wagered: $71,500
Total NET profit: $10,400
ROI (Return on Investment): 14.55%
Above, the ROI is the same but the net profit has a higher differential.
If I used a 55% win rate for the average "Joe Public" bettor and a 60% win rate my my bankroll, which is more realistic, the numbers would look something like this:
AVERAGE "JOE PUBLIC" BETTOR
Average line: $110 to win $100
Amount per play: $110
Amount of 6 month bets: 520
Win/Loss record: 286-234
Win percentage: 55%
Total amount wagered: $57,200
Total NET profit: $2,860
ROI (Return on Investment): .05%
MY BANKROLL
Average line: $110 to win $100
Amount per play: $550
Amount of 6 month bets: 130
Win/Loss record: 78-52
Win percentage: 60%
Total amount wagered: $71,500
Total NET profit: $10,400
ROI (Return on Investment): 14.55%
It's impossible to know the exact win percentages which affect the numbers but the purpose of these two posts are to explain the benefits of playing a less amount of plays which are stronger in value than the average bettor. I just wanted to explain my handicapping and betting strategy. Some may agree and some may disagree and that's perfectly alright. Hopefully everyone will have a better idea about me and my thinking. Good luck!