Got a Betting System? Now you need a Betting Bank!
Betting banks are an essential part of professional sports betting systems. They help bring order and control to the fast moving football betting world and a gambler’s urges to bet and to help them stop chasing losses. This article explains more about betting banks and how to use them to set your goals and win more with Betaminic’s Soccer Betting strategies.
For some people betting is a bit of fun, for others it is a serious way to make money. Professional bettors see betting as a form of investment. It may be on the riskier end of things, but as they say, high returns come with high risk.
With any investment, you have a plan. You start with your initial investment and want it to grow. With the American stock market, some people might hope it to increase 7%-9% on average per year, but we all know the financial markets have sudden, unexpected big drops. Investors look at past patterns to make their investment choices based on historical data. But there is so much data to consider in the global markets. But football is much more manageable. It is much more possible to know what affects the games and there is very little chance of unexpected political decisions or business scandals affecting a soccer game’s result. Big data can be used on the Betaminic site and past patterns in football can be analysed to find winning strategies. The Betamin Builder Tool is free and allows people to use big data to find profitable soccer systems. Some Betaminic public strategies aim for 3-10% profit per month. By combing many strategies together, even greater profits with fewer losing months can be found because we spread the risk. The multi-strategy system explained in the book “Big Data Betting” (download here free) is called the Proven8 and it hopes to increase by 19% on average per month. As with an investment plan, you know how much you have put in and how much you are up or down. Betting should be the same. That is why we have betting banks.
When people first start betting, they might see a good game, and put 20 euros on it direct from their bank card. If they win, they keep going. If they lose, they basically just add more money when their account goes to zero. They look at their betting history and wonder where their money goes, but it is like walking around a city without a map. You don’t really know where you are, where you are going or how to get there. Instead it would be better to say to yourself, “I know my betting habits, I know I use about 25 euros a week, so that’s 100 euros a month on betting.” In a year, that is 1,200 euros. How about taking 1,000 euros and making it your betting bank. You don’t even have to have that cash sitting in your betting account, you just need to know that is the amount that you are committing to your betting strategy. No more, no less.
100 Point banks
Your starting investment of 1,000 euros is your betting bank. It is a good idea to split it into points. A point is your basic stake. People usually start with standard 100 point banks. For 1,000 euros, that would be 10 euros per 1 point bet. This is so you don’t lose all your money on a bad run and have enough money to get through to the good runs. A 100 point banks means 1 point is 1 percent of your starting cash. If someone says to bet 3 points on a match they generally mean betting 3 times your basic staking level. Tipsters suggest bets between 0.5 to 5 points. It is very rare for a professional bettor to put 10 points on something. That means they don’t put 10% of their bank on one bet. If you lose 5 bets, your bank would be decimated and you would be close to giving up on the system you were using. Points make it easy to talk to other bettors without using figures. One point for someone might be 10 euros but another person might be 100 euros per bet. But they can discuss with the same risk level by talking about a 1 point bet.
We can then use points to calculate our Return On Investment (ROI), also known as the yield. If we bet 1 point on 100 games, and at the end of it we have 105 points. We have made 5 points profit. We have made 5% ROI. That means each bet we made had a yield of 5%. Even though we won and lost bets, the average profit for our efforts was 1.05 points back for each point bet. If we see a Betaminic strategy with a yield of 10%, we know that the target profit for that after 100 bets would be 110 points. If we start with a betting bank of 1,000 euros and a 10 euro stake per point, then we would hope to have 1,100 euros after 100 bets. If our system has 200 bets per month, we are targeting 1,200 euros after a month.
So the yield and the number of bets per month are very important for planning our targets.
Once we have our betting bank decided, we need our plan.
Some people follow their gut feelings. Others study form and team news. At Betaminic we find value odds. Those are matches where the odds have been deemed higher than they should actually be. This is Betaminic`s and your edge. Every professional bettor needs an edge, otherwise the bookmakers margin would take away their money little by little.
With Betaminic, our plan is to follow strategies based on big data. We can follow a single strategy or a system of multiple strategies together. It is kind of like a portfolio of strategies.
If we follow one strategy, for example the free Under Home Underdog and Away Winner Streak, we can see it has an average yield of 17.96% and 15 bets per month. So if we bet 1 point on each pick, we would expect an average of 2.694 points profit each month. (0.1796 points profit per game x 15 bets). With our 1,000 bank / 10 euro stakes that would be 26.94 euros profit. Over a year, that could be 323 euros. In comparison to our starting betting bank, that would be a 32.3% increase in one year.
Some people might say 323 euros is not much profit. Why don’t we bet more? If we have 1,000 euros, why not bet 200 euros a bet? We would have made 20 times as much profit. We would have made 6,460 euros! Well, yes, but if we had gone on a bad run, we would not have had enough cash to get through it. This strategy has a maximum drawdown (worst losing run) of -11.14 points. That means at worst in its history it was -111.40 euros down on 10 euro stakes. The betting bank balance never went under 888.60 euros. We only needed 130 euros actually in the account. But if we had been betting 200 euros, then it would have been -2,228 euros down. Our betting bank balance of 1,000 euro would have been at -1,228. Bankruptcy!
The point of a betting bank is to get us through to the end of a year and get our target profit.
The monthly results of the strategy show that every month is not in profit. It has losing months, sometimes 3 in a row. It is for those times we need a betting bank that has enough in reserve to get us through to the good times.
How big a bank is needed? In the case of this strategy, the maximum drawdown is 11.14 points. There are about 15 picks per month. For this reason, at very worst, historically, if we had started at the beginning of the 11.14 point losing streak we would have then needed 15 more points to get through the next month of betting. For this reason we could say the minimum point level needed for this strategy was 26.14 points. If this pattern continues, we could reasonably assume we will need a similar amount. Let’s round it up to 30 points. If we have a 100 point bank, but we only need 30 points of it. We could even bet 3 points per bet. In our 1,000 euro bank / 10 euro stakes, that would be 30 euros per bet. Our target profit for the year would go up to 969 euros. On a 1,000 euro bank, we now aim for 1,969 at the end of the year, a 96.9% increase! Who gives more?
Another way to view it is that you could have a 300 euro bank with 10 euro bets and aim for 323 euros profit after a year. You could then double your stake to 20 euros with your new 623 euro bank.
From the monthly results we can see that some months will end in losses. The betting bank gives us enough to get through those months. The drawdown and average monthly picks give us an idea of how many points we need to run the strategy.
For systems that are made up of many strategies, such as the Proven8 which is a combination of 8 strategies, that formula would need a very big bank. The Proven8 has about 200 bets per month and a historical maximum drawdown of 60 points. If we use the Individual Strategy Formula it would mean we need a 260 point betting bank. For 10 euro stakes it would mean a 2,600 euro bank. But in the case of multi-strategy systems, due to the high volume of bets, I think it is okay to think of the average weekly picks as a better guide. In the Proven8, that would be 50 picks per week (200 / 4 = 50) plus the 60 maximum drawdown, leading to a 110 (50 + 60 = 110) point bank being recommended. This is close to the standard 100 point betting bank used by many professional gamblers who bet on their gut feelings with no knowledge of their maximum drawdowns.
You can see why you need to plan ahead and decide at the start what your betting bank size is, what your target profit is, if it will cover your pick costs and if your bank will cover the maximum drawdown. Of course, looking at monthly results, it will not be a smooth procession of average performing months, but of winning and losing months of various levels. This is why having a betting bank is important. You have planned and are ready for losing runs and can make it through to the next good run.
Betting banks help control your betting impulses because you make your plan before you start. They help guard against common bettor errors such as betting on gut feeling, losing discipline, chasing losses, betting for the sake of having a bet on something, betting emotionally, planning for losses but not accepting them when they come. Betting banks are an essential tool for the professional bettor.
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Read more about Common Bettor Errors
Read more about the Importance of Drawdown in Sports Betting
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Read more about the free Betaminic Public Strategies here.