Hi and welcome to another episode from the MaxBet tips video series by Rescuebet. Today, we shall be looking at a betting strategy known as the Kelly Criterion. First, what it is and how you can use Kelly Criterion to boost your bankroll.
Bankroll management is one of the most significant and profitable aspects of sports betting. It is also called money management. No matter how experienced you are at choosing the winning sports picks, you are most likely to take higher betting risk than you can afford if you have a wrong or incorrect money management.
Kelly Criterion bankroll management strategy
Today, Kelly Criterion is one of the few bankroll management strategies used in sports betting. Basically, it is believed that you can use this model in your sports betting to prevent losing cash and very crucially to boost your winnings. Most commonly used by professional wagers, the Kelly criterion is no doubt quite complicated because the formula determines the betting amount. More so, bet advisors use the strategy to decide how much to stake when using the best odds.
Simply, the Kelly Criterion formula is
[(Winning probability X (decimal odds-1))- Losing Probability]: (odds-1)
Take, for example, you guessed that the Golden State Warriors have a 70% chance of winning the game and with the odds of 2.00, the calculation is that:
[(0.70 X 1)-0.30]/(2-1)
What this means is that Kelly Criterion suggests you spend 40% of your bankroll amount on the bet. The strategy, however, has disadvantages. They include: the method only works for placing single bets and does not accommodate multiples. Also, with a limited bankroll, it might be better off to use just a percentage of the suggested amount from the calculation and that would translate to a much safer move after all. Get more information on how to determine the amount you should stake on a bet. This is what Kelly Criterion offers, and is one of the betting tips available, and provided in this MaxBet Tips video series.
For more information, please stay tuned for other videos in this series. Thank you for watching! Good luck!