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I like what a lot of people have said here about a unit being 2%-3%. However, I read this book one time, I believe it was called "The Ceasars Palace Book Of Sports Betting", there was a money management method in there called the "Kelley Criterion". I love it, some people hate it, here's how it goes...
Let's say you have a system for betting NBA totals and you know from several seasons of analysis that this system will, on average, pick 57% winners. There's several factors into how much you should bet, if you want to optimize your potential winnings, or so the theory says. The formula is...
P = (W - (L/V))/100
P stands for percentage of the bankroll to bet
W stands for number of expected wins per 100 bets
L stands for number of expected losses per 100 bets
V stands for the vigorish of the bet
OK, so in this case V is the only thing we don't know off hand and it's real easy to figure out. If you're betting a -110 line the vig = 100/110 or 0.909090,
if you're betting a -120 line the vig is 100/120 or 0.833333. The vig is basically 100/(number you must lay to make 100). So, lets say you are betting at a shop where you lay -109.3, the vig is 100/109.3 or 0.9149. (Yes, I picked that number to make the math easier).
OK so now we have...
P = (57 - (43/.9149))/100
which leads to...
P = 0.10001
round it to...
P = 0.10
OK, so if you pick 57% versus a -109.3 line, and you want to maximize, you should bet 0.10 (10%) of you bankroll per bet.
OK, so what if you have a $1000 bankroll and you have 11 picks that day?
$100*11 bets is $1100 which is more than you have. Personally, I assume each bet is a loser and bet accordingly. If I know I should be betting 10% per game, that means that I should have 90% of my bankroll left after every game so I do the following...
$1000*.9 = $900 (1 bet)
$900*.9 = $810 (2 bets)
$810*.9 = $729 (3 bets)
$729*.9 = $651 (4 bets)
$651*.9 = $590 (5 bets)
$590*.9 = $531 (6 bets)
$531*.9 = $478 (7 bets)
$478*.9 = $430 (8 bets)
$430*.9 = $378 (9 bets)
$378*.9 = $348 (10 bets)
$348*.9 = $313 (11 bets)
$1000-313 = $687 risked on those 11 games, which is $62 per game.
Now why is this better than flat betting? You have $1000 and you are betting $100 per game in flat bets. You lose 10 in a row and you are done. Now, lets say you use Kelley, you lose 10 in a row and you still have $348. You always have a shot of coming back with Kelley. Now lets say you win 10 in a row. With flat betting, you won $1000, with Kelley you win more because you bankroll is larger after every bet which means you bet more. Kelly makes you bet more win you win and less when you lose.
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