Author Topic: Profit or ROI ?  (Read 4543 times)

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Profit or ROI ?
« on: 05 Aug 2019, 07:51 »
Hiya All,
I have another system that's showing profit after 500 bets and I want to go live with small stakes.

I can filter the selections on price and it gives me two different outcomes.

1. Higher profit and lower ROI
2. Lower profit and higher ROI

What would you choose to run with?

Without thought I tend to want to go for No.1 with higher profit/lower ROI. But with a lower ROI my margins are skinner and im relying on the number of bets to bring home the profit. My edge could disappear if there is a slight change in circumstances ie the changing of Horse Racing seasons.

Going with No.2 will bring home less profit but as the ROI is higher is probably going to be more sustainable in the long run.

What are your thoughts on this as I am undecided as to which route to go?
Thanks

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Re: Profit or ROI ?
« Reply #1 on: 18 Aug 2019, 21:58 »
Why don't you just test both approaches for a week and compare the results?
Always try your triggers in Test Mode before switching to real money!

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Re: Profit or ROI ?
« Reply #2 on: 19 Aug 2019, 09:36 »
Its only producing about 4 selections a day, so a week wouldn't be enough for gain any useful data. :(

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Re: Profit or ROI ?
« Reply #3 on: 19 Aug 2019, 13:28 »
Have you tried Time Machine?
Always try your triggers in Test Mode before switching to real money!

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Re: Profit or ROI ?
« Reply #4 on: 20 Aug 2019, 09:03 »
Yes I have used it in the past for the football.
I like the idea but the price to download the races is too much to make it worth while.

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Re: Profit or ROI ?
« Reply #5 on: 21 Aug 2019, 03:03 »
Hi Wehey!

A useful measure of risk is draw down:

For a given sequence of bets:

Draw Down Percentage = 100*((maximum size the bank rose to)-(minimum size the bank fell to))/(maximum size the bank rose to)

A common measure of risk used in other financial settings.

 

Please note, BetFair is seems to be currently OFFLINE