If you have been researching the web for what are the best money management strategies for sports betting you have certainly came across with the name Kelly Criterion. Kelly Criterion is a mathematical money management strategy that is aiming to calculate the most efficient stake to use when placing value bets. Clearly the goal is to maximize your profits and minimize the down side (risk associated with your betting). To avoid complicated equations and accurately compute the betting stakes for your strategy we recommend you to use our automated kelly criterion below.
As with all other calculators we have developed so far, our kelly criterion calculator is very simple to use. Here is what you have to do in order to use our kelly criterion calculator to do the math for you:
1. Add your current betting balance in the cell called "Current Betting Balance"
2. Add your expected win probability for the selection you have chosen in the cell called "Win Probability", using values between 0 and 1.
3. Add the odds quoted by the bookmaker in the cell called "Bookmaker Back Odds"
4. Optionally add a fractional kelly betting in the cell called "Fractional Kelly Betting". The standard kelly betting is 1.0, but if you want to wager less than the stake recommended you can add for example 0.5 to stake only 50% from what kelly recommends.
5. Let Bettingmetrics kelly criterion calculator do the rest for you
All the computations are done automatically in just few seconds so you do not miss the betting opportunity. I suggest once you enter the above data to fully trust Bettingmetrics kelly criterion calculator and simply follow the numbers.
In order to apply the Kelly Criterion strategy you have to ensure that you have an edge over the bookmaker (identified value bets) as otherwise according to the Kelly Criterion strategy, no bet should be placed.
To calculate the optimal stake you have to apply a mathematical formula and use a few variables to do the calculation. If you are not that much into maths there is a chance that the formula will be slightly difficult for you.However you can always use our automated Kelly criterion calculator above and resolve the issue.
For the once that love doing the calculation manually here is the Kelly criterion formula and a real life example of how it works.
For instance, the odds of the event are 3 with an implied probability of 33% but we have calculated our own probability of 39%. The formula is:
[(Your probability * by the odds available) – 1] divided by (odds available -1)
Let’s now use the above numbers and calculated the Kelly Criterion suggested stake
[ (0.39*3 ) - 1 ]/( 3 – 1 ) = [ (0.39*3) – 1 ]/2 = [(1.17 – 1)]/2 = 0.17/2 = 0.085
0.085*100 = 8.5%
Meaning we have to risk 8.5% from our betting bank and back the selection where we have identified the value bet.
We realize that applying this formula manually all the time is time consuming and certainly there will be many people that would not bother to do it. This is why we have developed an easy to use Kelly Criterion calculator that will automatically compute the numbers for you. Above we have described in a few easy steps how to use it.
To find out more about Kelly Criterion read our article - here.