Return on investment is a performance measure used to rate the efficacy of an investment. To calculate ROI, the yield of an investment (or in this instance, the profit earned from your own sports betting system) is divided by the cost of the investment together with the outcome typically being expressed on this site as a proportion.
ROI is the ideal method to analyze a betting system’s achievement also, for this particular example, we will assume a risk of 100 on each wager. We will begin with taking your net gain and dividing it by the whole risk. By way of instance, if you produced a system that had 500 games played and you won 25 units from it, your sports betting ROI would be calculated thusly: (25 units X 100 ) / (500 games X 100 ) = .05. This number is typically viewed as a percentage, so this system could have a return on investment of 5%. Basically we have taken the profits and divided that by the total price of investment — or the total amount of money we’ve placed in danger.
One of the reasons this number is important is that is helps us determine if a system is profitable. There are often since we carry with money to underdogs with losing records methods. This means that we can not use winning percentage as a metric of success, but we could determine our return on investment by simply dividing our units made we have chosen on.
Read more here: http://new.mollyfletcher.com/?p=4303
