Yield, ROI, and Closing Line. Are you gonna win with these tips?
Hello, in today’s article we will share with you the most important terms in the world of betting and how to find out if your bets are valuable and if you will win in the long run.
Most inexperienced bettors only track their progress by simply checking their account balance. They just make bets based on how much money they have in their account. They do not have a bank management strategy or knowledge of what their profit ratio is. When they win, they withdraw their money, when they lose, they deposit again, never knowing if they are at profit at all.
Each player must know whether he is at a profit or a loss from the bets and if he monitors and records his results, according to the difference between profit and loss, he finds out what his net profit from bets is.
However, in order to understand what percentage of his profit is compared to the investment he has made or how much he earns for each invested 100€ in bets or on average per bet, he must be aware of his ROI and Yield. Basically, yield can compare your results with another player or results between several tipsters. Profit is never a comparison factor and now you will understand why.
What is ROI
Return on Investment reflects the profitability of an investment for a certain period. ROI is an indicator that shows the rate of increase or decrease of your capital invested in betting.
To calculate the return on your investment for a certain period, you need to divide the return, i.e. the net profit of the bank you started with.
Suppose you start in September, when some championships are beginning, with 1 000 €. On the break between the two half-seasons, you have 1 330 € in the bookmaker’s account and you decide to calculate your ROI.
Since your profit is 330 €, the return of investment is calculated by dividing 330 € of the initial bank by 1 000 € and you get 0.33, which you multiply by 100 to see the percentage and you get a 33% ROI.
We advise you to do it at 3, 6 and 12 months. We don’t give stats of ROI on our site, because each player starts with a different bank and we cannot be objective, but each client can make his own in his account. We record the Profit in percentages, with which you can calculate your ROI in relation to your bank for each month, quarter, or year.
What is Yield
The most important metric in betting is Yield. It measures the effectiveness of the bets in relation to the total turnover. It fully shows how effective the bets you make are. Only on Yield can you find out if a tipster is good or not. You can’t do it if you check out only the profit. It’s impossible because some tipsters bet with 10 Units on average per bet and others with 0.5 Units, so the first one can have 100 Unit winnings and the second one 20 Unit and many of you will say the first one is better, but in fact the latter is 4 times better and more efficient because his yield is higher.
To calculate Yield correctly, you must calculate your net profit and the amount of all bets you have made. If you keep a table with your bets, it will take no more than 2 minutes. The formula for Yield is similar to that for ROI and here we divide the Winnings of the Amount from all bets.
In the previous example, your winnings are 330 €, and if you place bets worth 2 500 € you will get 0.13 multiplied by 100 is equal to 13% Yield for one half-season, which is a great result. Good indicators of Yield are between 4% and 15%. Everything above them is unique and is achieved by few around the world. We happily have 26%, thanks to the great tipsters we work with.
Simply put, Yield presents the average profit or loss of a bet, taking into account the bet amount or the average profit or loss of each 100 € invested in bets.
How to find out if your bets are worth it
In the third part of the article we will talk about how to find out if you will win from the bets you make in the long run, that is, if your bets have value.
The important term you need to know is the Closing Line, ie. the closing line of the match.
Bookmakers make their odds based on statistics, lineup news, motivation, and more when releasing odds for an event. Let’s say they give the Liverpool-Chelsea odds on Wednesday at 10:00 and they are 1.90 for Liverpool, 3.30 for X, and 4.20 for Chelsea. The match is on Saturday from 18:30 and until then, according to the bets and the information that appears, the odds may change. The most accurate odds for an event are those of Asian bookmakers such as Pinnacle. Professional players play there because there are no limits and they dictate the odds market, ie. when a player bets 10 000 € or more on a win for Liverpool because, for example, he gets the news that Kante will not participate, the odds will fall, for example, to 1.70 for a Liverpool win. If this professional player bets such a sum, then there is some information that supports the forecast, soon after that in European bookmakers such as bet365 the odds fall.
I’m writing this to explain to you how the odds move, it is always based on information. Your bets are valuable if you beat the closing line just before the start of the match. That is if you bet on a victory for Liverpool at 1.90 and just before the start of the match, the odds are 1.70, then you have 0.20 hundredth Edge, ie. an advantage. This means that your bet is valuable. If most of your bets take precedence over the closing line, you will win in the long run.
The later you bet on a match, ie closer to the beginning of the match, the smaller the chance that the odds have value because most of the important information about the match is already known. We play, for example, most often, just when the match lines open and we know information that is not available to the bookmaker.
Check out the explanation of different types of bets like Both teams to score bet, for example.
We hope we have been helpful and that you have learned the most important metrics in betting.
If you want to win in the long run you can become part of our community of bettors on the Subscription page. Statistics of our paid tips can be found here. Good luck!
If we missed something, add it in the comments