Adjust bankroll for open bets
We’ve just enabled a new feature for all ValueBetting web users to improve the automatic stake size calculations: When calculating the recommended stake size, we now take your open bets into account.
You might notice your recommended stake size will slowly decrease the more open bets you have. This is done so as to better maintain your risk level (set by the bet sizing percentage, also called fractional Kelly criterion).
An example to explain why we implemented this:
- Let’s say you bet 1% of your bankroll at the start of the day. This is calculated by the Kelly criterion to the optimal stake size when balancing risk and profit.
- You then place 99 more bets that are open simultaneously, all using 1% stake size.
- Your last bet, using the last 1% of your bankroll, can hardly be said to balance risk and profit. It’s almost as you’re betting 100% of your bankroll! (Luckily, around half your open bets will hopefully win).
This feature is important if you often bet a majority of your bankroll each day.
On the other hand, if you only bet 10% of your bankroll every day, you will not notice much difference. The feature can easily be turned off in Options, just disable “Adjust for open bets”.
What you need to do
- Make sure your bankroll is correct (under Options). You still need to adjust your bankroll regularly, but not as often as before.
- Decide if you want to keep this feature enabled. If so, there is nothing you need to do, it’s activated by default.
For more details, and comparison charts, read more about the Kelly criterion with multiple simultaneous bets.