Calculating ROI When Laying Off Bets

[sharky_uk]

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?

[doubleup]

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.

[sharky_uk]

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