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Sports Investment Statistics
Financial traders on Wall Street often talk about last year’s returns – or results over a 3-5 year period. Investors review long-term stock portfolios and mutual funds performance. Investing in sports is somewhat different in appearances, especially with the negative political views on the subject of gambling – but can absolutely be approached in a similar manner to the stock market. In fact, the sports world lends itself to the same, if not more statistical analysis in many ways. For starters, there are tons of stats in the sports world, just like the stock market. More importantly, for the purposes of our research and article, sports games can be broken down into independent variables that we bet (invest) on just like any hot number on the stock market or the latest top mutual fund. Besides, it's all calculated risk using figures, in both the sports world and the stock market. Only here, we have more fun investing on the sports games we love to watch!
How A Profitable Sports Investment Portfolio Works Using Our Basketball Investing System
Many sports bettors know that they need a 52.4% winning percentage to break even if they place bets with typical point spread odds, where you risk $110 to win $100. In other words, at a 52.4% win rate, your expected return from point spread betting is zero. Explained mathematically: 52.4% * $100 – (100% - 52.4%) * $110 = $0
Now, let’s vary some of the parameters in that equation, such as bet size and winning percentage, and see what kind of results we might expect. Here are some of our assumptions:
* Starting bankroll is $5,000
* Moderate risk strategy risks about 1% of beginning bankroll per bet (a rule of thumb for many professional bettors)
* High risk strategy risks 2% of bankroll per bet
* Extreme risk strategy risks 3% of bankroll per bet
* Win rates examined include 51%, the break-even 52.4%, 54% and 56%
* Assume 1,000 bets per year (a little less than 3 bets/day) to study longer-term results
Results: Expected Values
We computed the expected profit per bet and projected the expected profit and loss over periods of one and three years. Assuming the allocated bankroll is $5,000. This is what the numbers look like:
Moderate Risk Bet Size (1% of Bankroll - $50 Players) Moderate risk NBA/NCAA basketball betting strategy
High Risk Bet Size (2% of Bankroll - $100 Players) High risk NBA/NCAA basketball betting strategy
Extreme Risk Bet Size (3% of Bankroll - $150 Players) Extreme risk NBA/NCAA basketball betting strategy
As you see above, statistically, even if we barely exceed 53% of all games (Above the 52% Break Even Percentage) of all plays, you are going to be in a very comfortable position at the end of the day with a healthy bankroll. Please understand, this chart above does not factor in underdog plays SU on the money-line, which are considered our bread and butter plays (Ex: Lakers +650 Odds = $650 payout for $100 per game players). We typically release several underdog SU money-line plays a week getting maximum value for your sports investment portfolio. Rest assured, we have been well exceeding the break even percentage for over 8 years running and getting our clients on the profitable side of the ball, every game, every season!
