Kelly Criterion - Best Money Management Strategy for Sports Betting

December 03,2019
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Oscar Holt

Money Management Strategy for Sports Betting

Typically, people go into betting with the main aim of making money. It is not a bad idea for you to want to cash in millions, but you must learn proper money management in sports betting. This business is not all about making money or winning bets. It is also about securing the money you have made to avoid losing them.

So, it is foolhardy to build up your account to a large amount and then blow it away with one irrational stake due to poor money management skills. In reality, money management in sports betting has a lot to do with your goals and expectations. If you want to last long in the world of betting, you need to be conservative.

The Method of Money Management in Sports Betting

The best pick when it comes to money management in sports betting is the Kelly Criterion. This strategy is all about maintaining profits when you can spot odds that are greater than they should be. Then, if you want to make use of the strategy, you should be able to have an eye to pick out value bets. For you to employ this method of bankroll management, you have to judge the possibility of a given result precisely.

Applying your Money Management Strategy

The first thing you need to work to use this strategy is your ability to assess the probable outcome of a given market. You can do this by critically analyzing statistics and news about the teams in your selection.

The next step is to check and put into consideration carefully; the odds presented to you by the bookmakers. Besides, you must always be sure to convert all data to decimal before you make any calculations. The Kelly Criterion makes use of a mathematical formula:

Kelly Stake =[(Estimated Probability × Odds) - 1] / (Odds – 1)

So, the outcome of the calculation will indicate the percentage of your current balance to be risked in the appropriate selection. For instance, if you estimate that FC Barcelona has a 40% possibility of winning a game, the decimal value will be 0.4. If the odd given by the bookie is 2.00, the calculation would be:

[(0.4) × 2.0) - 1] / (2.0-1)=0.2/1 = 0.2

You will have to multiply the outcome to get the percentage value, and for this calculation, it is 20% of your bankroll. Certainly, this strategy will be favorable for you in the long run.

The Kelly Criterion is undoubtedly not the only money management strategy in betting. Moreover, there are others like the Easy Money System, Fixed Stake, Star System, etc. You mustn't use the Kelly Criterion if it doesn't work for you.

Everybody has different things that work for them, right? The best thing is to pick what works for you and stick to it. Hence, if you’re able to find out your strong points when it comes to money management, cashing in will be an easy thing.