Systems of Finance Management in Betting

In this article, we will talk about the system of financial management in bets. Here you will read about experience in this and how to manage your finances in bets in order not to become a bankrupt.

The goal of financial management is to maximize profits, to succeed in bets due to a successfully chosen strategy.

Tasks of financial management:

• ensuring the most effective use of financial resources;
• optimization of money turnover;
• ensuring the minimization of bankruptcy.

Since the bets on sporting events appeared, players have developed and tried various betting strategies that would help beat the bookmaker and increase the bank. Some of these strategies have proved to be effective and in demand to this day, some due to their impracticality have been forgotten. At the moment there is a number of betting strategies that players use. Let’s talk briefly about each of them.

Oscar Grind

This financial strategy is needed to make bets cyclically until you get a certain profit. The following rules must be observed.

• At first you determine the amount of profit and make the first bet in the amount that will allow you to get the profit you need.
• If you lose, you calculate the bet size based on the amount of profit that was calculated before losing at the bet.
• In case of victory, the next bet is calculated based on the larger amount of profit (you set the profit amount step by yourself).

Miller Financial Management

The essence of Miller’s financial management is that for every bet you bet 1% of the initial bank, until the size of the bank is increased by 25%. After that, Miller takes 1% of the already formed bank again, and when it grows by another 25%, the bet is recalculated again. It turns out that this strategy brings 100% revenue in size from the original bank.

The claims to this strategy are the same as those to the previous one:

• irrational use of available funds for bets;
• not the best strategy in terms of maximizing profits at a plus game.

Kelly Criterion

In our opinion, all of the above strategies don’t give a full guarantee that your financial bank won’t be empty. Therefore, it’s recommended using a strategy called the Kelly Criterion, which, in our opinion, is the most effective and safe.

The Kelly criterion is applicable not only as a bet strategy – it’s also actively used in other financial spheres, such as stock markets, etc. In different sources you can find different names of the Kelly Criterion, for example, the criterion of capital growth, maximization of logarithmic utility, optimal growth strategy. It’s already clear from the titles that this strategy will help you maximally use your finances and lead to optimal capital growth.

Criterion Kelly has received wide application, as it has a mathematical justification, which in turn gives certain guarantees. The main goal pursued by this strategy is to make the most of your finances and not be a bankrupt. To do this, you need to determine the amount of interest as a percentage of the amount of money, while correctly assessing the probability of the outcome of the event. Mathematically, it looks like this:

Cb = ((Cbo*Ee) – 1)/(Cbo – 1)

• Cb – coefficient of the next bet;
• Cbo – coefficient of the bookmaker office;
• Ee – your estimate of the probability of the outcome of an event.

Example:

• Your bank: $1000
• Bookmaker coefficient: 3
• Your estimate of the outcome of the event: 0.4
• Cb = ((3*0.4) -1) /(3-1) = 0.1
• Your bet 1* $1000= $100

As you can see from the formula, the success of this strategy directly depends on how correctly and accurately you can estimate the probability of the outcome of an event.

If the outcome of events is properly assessed, the bank grows faster than any other strategy and due to that this criterion is famous.

Perhaps the only and most important drawback of Kelly’s criterion is that it’s sometimes difficult to assess the true probability of an event. However, if you can do this, be sure, this strategy is ideal for you. It will help you get the best results when playing with the bookie.

There are many strategies that you can use to manage your finances in bets, however, according to many experts, Kelly’s criterion is the most rational of them. This strategy is fully aimed at your financial well-being, as it allows you to competently manage your finances and protect yourself from bankruptcy.

However, for a lucrative game with bookmakers, only financial management isn’t enough. It’s also necessary to have a correctly chosen strategy of bets that bring a plus in the arsenal. And financial management will already allow you to make this plus the maximum possible.