How Much Money Do You Need to Start Arbitrage / Positive EV Betting?

Summary

This video script discusses the financial requirements for starting arbitrage and plus EV betting in sports. It advises beginners to start with a small bankroll, like $100, to learn the ropes and avoid significant losses. The speaker recommends a minimum of $1,000 to $2,000 for practical purposes, emphasizing the importance of maximizing expected value and return on investment. The script also introduces Odds Jam, a software for finding arbitrage opportunities, and touches on the Kelly criterion for calculating bet sizes to balance risk and reward. The speaker warns against betting too much to prevent bookies from restricting accounts and suggests using multiple bookie accounts to capitalize on opportunities and deposit match offers.

Takeaways

• 💡 The minimum recommended starting bankroll for arbitrage and plus EV betting is $100, but for practical purposes, $1,000 to $2,000 is advised.
• 📈 Starting with a small bankroll allows beginners to learn and minimize losses from mistakes.
• 🚫 Avoid betting more than $500 on a single bet to prevent bookies from potentially canceling bets or restricting accounts.
• 📊 Arbitrage opportunities can offer a guaranteed profit, albeit usually at a lower percentage (around 1-2%).
• 💰 The expected profit increases with the size of the bets placed, but it's crucial to balance risk and reward.
• 🔍 Using tools like Odds Jam can help identify arbitrage and positive EV betting opportunities from various bookies.
• 💼 The Kelly criterion is a strategy to determine bet sizing based on maximizing expected returns while minimizing bankruptcy risk.
• 📈 Positive EV bets can offer higher expected returns, sometimes up to 19%, but they come with more risk and require careful calculation.
• 🔗 Having multiple bookie accounts with funds is essential for capturing arbitrage and positive EV opportunities as they arise.
• 💸 Bookies often offer deposit match bonuses, which can be capitalized on with a larger starting bankroll to gain extra funds.

Q & A

What is the minimum bankroll recommended for starting arbitrage and plus EV betting?

Theoretically, you can start with as little as $100 or even $50, but practically, it is recommended to start with at least $1,000 or ideally $2,000 as your starting bankroll.

Why is it suggested to start with a small amount in arbitrage and plus EV betting?

Starting with a small amount allows beginners to learn without significant risk. It helps in understanding the process and minimizing losses from mistakes like betting on the wrong market or outcome.

What is the potential risk of betting too much money on a single bet according to the script?

Bookies may not allow large bets to go through, potentially cancelling them or restricting the account, which could lead to significant losses in potential profits.

What is an arbitrage opportunity and how does it work?

An arbitrage opportunity is a situation where you can bet on all possible outcomes of an event and guarantee a profit regardless of the result. It involves placing bets with different bookmakers to cover all outcomes and lock in a profit.

How does the script suggest using software like Odds Jam for arbitrage and plus EV betting?

Odds Jam is recommended for finding arbitrage and positive expected value opportunities by getting odds from different bookies and calculating the best bets to maximize profits.

What is the Kelly criterion mentioned in the script, and how does it help in betting?

The Kelly criterion is a formula used to determine the optimal size of a series of bets to maximize expected value while minimizing the risk of bankruptcy. It calculates the percentage of the bankroll to bet based on the potential return and risk.

Why is it important to have multiple bookie accounts for arbitrage and plus EV betting?

Having multiple bookie accounts allows you to take advantage of arbitrage opportunities and positive EV bets that may not always be available on the same bookmaker. It also enables you to capture deposit match offers for additional funds.

What is the significance of the 'edge' in plus EV betting as discussed in the script?

The 'edge' in plus EV betting refers to the percentage advantage a bettor has over the bookmaker. A higher edge indicates a greater expected return on the bet, which is crucial for long-term profitability.

How does the script suggest managing your bankroll when starting with arbitrage and plus EV betting?

The script suggests starting with a bankroll of at least $1,000 to $2,000, adjusting bets according to the Kelly criterion, and updating the bankroll as profits are made to increase potential profits over time.

What is the potential daily profit from arbitrage and plus EV betting as discussed in the script?

The potential daily profit from arbitrage is around 2% of the bankroll, while for plus EV betting, it could be as high as 7% of the bankroll, depending on the opportunities and the effectiveness of the betting strategy.