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Title: Calculating ROI When Laying Off Bets Post by: sharky_uk on October 14, 2013, 12:40:29 PM Inspired by the TfT thread I am maintaining a spreadsheet recording all of my bets.
My ROI is being skewed due to laying off golf bets in running. Here is an example: Prior to the start of a tournament I have the following 2 BACK bets on a player... 1) BACK £30 at 160 (Potential Profit £4,770) 2) BACK £50 at 170 (Potential Profit £8,450) In running I place a further 2 bets to LAY the same player... 3) LAY £50 at 100 (Liability £4,950) 4) LAY £50 at 60 (Liability £2,950) Therefore my overall P&L is +£5,320 (player wins) / +£20 (player doesn't win) My "Amount Bet" column shows a total of £30 + £50 + £4,950 + £2,950 = £7,980 The player doesn't win so my "Profit" column shows £20 - £1(commission) = £19 This gives a ROI of 0.24% Is it correct to use the liability of the LAY bets in the "Amount Bet" column when my "real" liability on this market was never more than my original 2 bets totalling £80? Title: Re: Calculating ROI When Laying Off Bets Post by: doubleup on October 14, 2013, 03:49:07 PM You should just use the initial amount invested and the return - ie ignore the amount used to lay off. As you won't always get the opportunity to lay off the ROI will eventually settle down at "normal" level. Title: Re: Calculating ROI When Laying Off Bets Post by: sharky_uk on October 14, 2013, 04:53:30 PM You should just use the initial amount invested and the return - ie ignore the amount used to lay off. As you won't always get the opportunity to lay off the ROI will eventually settle down at "normal" level. Obvious really - Thanks. ROI looks much better now :) |