Have you ever heard of the Kelly Criterion betting system? Would you like to learn how successful bettors around the world use this method to maximize profits from their bets?
Hi, I’m DJ Kiddo, and welcome to another episode from this 5 Minutes Betting Systems video series BettorClub. In today’s video, we will be breaking down everything you need to know about the Kelly criterion betting system and how you can use it to enhance your betting system and strategy. Before we dive deeper, take a moment to subscribe to our channel and get the latest betting news, strategies, and trends in sports betting. Now that we’ve done that let’s learn more about the Kelly criterion betting system. So, you might have come across this term– the Kelly criterion betting system. What does this term even mean?
The Kelly criterion betting system is a money management formula that was developed by John L. Kelly in 1956. This system is a popular staking method used by both professional sports bettors and stock market investors as well. Deciding how much to stake on a particular bet is one of the fundamental skills that will facilitate wealth creation and management for the bettor in the long run. Ultimately, staking too much or too little on a bet could be the downfall of any successful investor. But how does one go about deciding how much to bet? The Kelly criterion provides a rational solution to this universal question. This betting system tells you what the optimum betting amount should be when there is a difference between the true odds of a game and the expected odds posted by the sportsbooks.
Now let’s learn how to calculate the optimum stake for our bet under this system. The formula to calculate the bet value is :
f*= maximum stake or fraction of the bankroll to bet
b =decimal odds offered by the bookmaker- 1
p= probability of winning
q= probability of losing or 1-p
Once you calculate the optimum percentage of your bankroll to bet, betting more than this amount will most definitely leave you broke. Whereas, if you stick to this percentage or bet lesser than this amount, you gain a healthy profit from your wagers. Always keep in mind that a positive percentage implies that the odds of that particular bet are favorable. Bettors must remember to avoid the bet altogether if the value of f* (percentage of your bankroll) is more than zero.
Now you know how to apply the Kelly Criterion betting system to your bets. You can also start experimenting with evaluating whether this method is indeed more profitable than other betting systems that focus on betting only to level the stakes. We hope you found this episode on the Kelly Criterion betting system resourceful. Check out other curated upcoming epsidoes for more valuable information on other sports betting systems. If you haven’t, be sure to subscribe to this channel, and I’ll see you next time!