Kelly Criterion hailed as an effective betting strategy by many pro bettors, you stand to gain a lot from using this fantastic betting system. However, like all things, it’s not without its flaws. We’ll be going into how it works and the things to remember when implementing it.
What The Kelly Criterion Sports Betting Strategy Is
At its core, this is simply a mathematical formula that helps you structure how you approach each betting session. As a bettor, it helps you in two different ways. The first is that it actively helps you seek out and place bets on sports events where you can win. Because of this, it can be an invaluable tool to value bettors. The second equally important thing for you is that it helps you lose as little money as possible. The betting strategy directs you to bet less on games where the odds aren’t in your favor. All of that being said, this betting system is one of the more difficult ones to master. However, with effort and practice, you’ll be able to get the hang of it in no time!
Breaking Down The Kelly Criterion Formula
The key to using Kelly Criterion betting strategy is that you have to master its rather complex formula. Here it is:
- f* = bp – q
- F represents the final value of the entire formula. It gives you the precise fraction of your bankroll you’re supposed to bet on any sports event.
- B represents the multiple stakes you can expect from the proposed wager.
- P represents the probability of the anticipated bet you’re about to place winning.
- Q represents the probability that the due chance will end in a loss.
Benefits Of Using The Kelly Criterion
Used as intended, there are several advantages to employing this particular betting strategy. These include but aren’t limited to:
- It gives you a sound and logical way to determine how much your bankroll you should stake.
- It factors your precise bankroll size, ensuring it doesn’t give you a blanket tactic to use.
- It gives you a measure of the balance between protecting your bankroll and positioning yourself for a big win.
- This strategy ensures you never place bets on any sports event with no positive expected value.
- It makes staking with low odds more favorable and rewarding.
Demerits Of Using The Kelly Criterion
While this betting strategy might be significantly better than many others out there, it is by no means perfect. Two major drawbacks of using this betting system is that:
- It demands considerable mathematical skill as one mistake using this formula can put your bankroll at real risk.
- It can get rather aggressive.
Knowing the pros and cons of this betting strategy, we still recommend it to sports bettors, provided they are willing to learn the formula and tweak their calculations within reason!