Question for you guys. Was reading an Iceman thread from a few months back and he mentioned he is aiming to get 3% ROI. Does this mean a 3% return on each one of his bets? Or does it mean 3% ROI on the entire bankroll for a year? I am assuming it is 3% on each bet (eg. $10 bet, shooting for 30 cent return) but I am not entirely sure. Thanks for everyone's help, this is the best forum on the net.
ROI always is calculated on long-term, you need a lot of results to confirm your ROI accurately. Once you know it you can say your expected return from any wager is x%. In other words at 3% and he made five wagers of $500 each, he would "expect" to earn himself $75 today. Of course he won't end up plus $75, but you get the idea.
ROI is the only stat that matters for serious sports bettors. Win/loss records can be deceiving. If you go 40-20 are you better than a guy that goes 150-110? ROI stresses total return, which at the end of the year is the stat that matters most.
ROI is the only stat that matters for serious sports bettors. Win/loss records can be deceiving. If you go 40-20 are you better than a guy that goes 150-110? ROI stresses total return, which at the end of the year is the stat that matters most.
The easiest way to think of it is this - Keep up with the amount of money that you bet, this is your Amount Risked, keep up with the amount of money that you win, this is your Amount Returned. Amount returned includes the amount you get back for a bet that wasn't lost - so a 50 to win 10 bet would be a 60 return.
Amount Returned - Amount Risked = Profit
Profit / Amount Returned = Return on Investment
like bill said, ROI is how much on average you would expect to get back of any bet you place. You profit for the year will be the amount of money you wagered * your ROI. If you bet 10 times your bank ancount, and your ROI is 10%, then you'd double your money once per year.
Any long-term ROI in the positive means you're a winner
Amount Returned - Amount Risked = Profit
Profit / Amount Returned = Return on Investment
like bill said, ROI is how much on average you would expect to get back of any bet you place. You profit for the year will be the amount of money you wagered * your ROI. If you bet 10 times your bank ancount, and your ROI is 10%, then you'd double your money once per year.
Any long-term ROI in the positive means you're a winner
exactly how these guys answered your question is how I was thinking.
Add all the money from all the bets you placed. For example 100 bets at $110 for each bet equals $11,000 bet and than take how much ahead you are. Lets say $400. Than divide $400 into $11,000 and it equals 3.6% ROI.
That basically sums it up. Thanks for the help guys:toast:
Add all the money from all the bets you placed. For example 100 bets at $110 for each bet equals $11,000 bet and than take how much ahead you are. Lets say $400. Than divide $400 into $11,000 and it equals 3.6% ROI.
That basically sums it up. Thanks for the help guys:toast:
sean1 said:
This is misstating the importance of ROI. In theory you would bet anything with an ROI of 0.1% or more. However risk/return enters the equation. Yes dollars in the bank are the end goal, but ROI is important for you to get there. Otherwise you could be risking money for very minimal return, or alternatively spending your time on a sport or angle when your resources could be placed elsewhere. Everything in life has an effective ROI, the more you maximize ROI and your high ROI activities, the better off you will be financially.
ROI always is calculated on long-term, you need a lot of results to confirm your ROI accurately
You're confusing ROI with EV. ROI is your actual return while EV is your theoretical return. You can calculate ROI of as small or large a sample as you want.
I'll say it again that ROI can mean the return from your initial outlay (starting bankroll). It all depends how you define 'investment'. In sportsbetting we see each bet as an investment, so we define 'investment' as turnover.
I'll take dollars made over ROI any day of the week.
It's better to be lucky and rich that smart and broke
I agree that at the end of the day it's the $$$ that matter, ROI is irrelevent.
However risk/return enters the equation.
Wildbill, again you are confusing ROI and EV.
You're confusing ROI with EV. ROI is your actual return while EV is your theoretical return. You can calculate ROI of as small or large a sample as you want.
I'll say it again that ROI can mean the return from your initial outlay (starting bankroll). It all depends how you define 'investment'. In sportsbetting we see each bet as an investment, so we define 'investment' as turnover.
I'll take dollars made over ROI any day of the week.
It's better to be lucky and rich that smart and broke
I agree that at the end of the day it's the $$$ that matter, ROI is irrelevent.However risk/return enters the equation.
Wildbill, again you are confusing ROI and EV.
