Betting Tips and Kelly Criterion

Making money in soccer betting is possible only whentop European Soccer Leagues that played during the
your predictions are significantly different from those2008/2009 season: Austrian Bundesliga, English
of the bookmakers. This is what is known as "valuePremier, Dutch Eredivisie, French Ligue 1, German
betting". The profitability of fixture is a product ofBundesliga 1, Greek Ethniki Katigoria, Italian Serie A,
bookmaker odds and the probability of a win. A fixtureScottish Premier, Spanish Primera Division and Turkish
will be counted as "value bet", when the product isSuper Lig.
higher than 1. For example, if you think the probability ofThe assumption is that bookmakers provide the
a win is 50%, then only odds higher than 2 areminimal betting odds for match favorites. Thus, these
considered a value bet.odds can be used to estimate the value bet for each
The value bet calculation can be easily integrated intomatch. The frequency of home wins, draws and away
the well-known and proven Kelly's strategy for moneywins defines the probability of a win, and the value bet
management. According to this strategy, a stake isof a game is estimated by multiplying minimal average
calculated in a proportion to the starting wealth and thebetting odds by the estimated probability of a win.
size of the expected profit. For example, if theSummary
probability of a win is 60% and the betting odds areAn optimal value bet is calculated in a way that
equal to 2, then the betting stake which equals tomaximizes the betting profits when using Kelly's money
40%=60%-(1-60%)/2 of your wealth has to be placed.management strategy. The average betting profit is
Given the betting tips, what would be the optimal valuecalculated for the different value bets from 1.01 up to 2.
bet providing a maximum profit when using Kelly'sThe optimal value bet for the above top European
strategy?Leagues was found to be 1.38. Thus, if your value bet
This article summarizes a research intended tois above 1.38, this is your opportunity to place a stake
estimate an optimal value bet based on data from 10according to Kelly's strategy.