ROI does it help to define good vs mediocre strategies?

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Driftspite
Posts: 10
Joined: Sat Dec 03, 2022 4:13 pm

I have been taking a bit of time to watch the #BettingPeople interviews from Star Sports (worth a watch, Peter W is there amongst others).

A few interviewees throw around ROI figures which vary wildly. From what I see there can be two ways of looking at ROI in betting.

1. Traditional financial (generally accepted):
ROI is expressed as a percentage and is calculated by dividing an investment's net profit (or loss) by its initial cost or outlay.

This definition of ROI does not take into account the holding period or passage of time.

Or

2. Stake based ROI, % profit (gross or net of commission) relative to total staked.

The first can produce some really wild ROIs for effective strategies that produce many multiples of initial investment (bank). The second will potentially be a very small % on a trading strategy and even a small % a betting type strategy.

What do people use for their ROI. For me the first gives >1000% from my initial bank, the second gives ~4.6% (gross) which is slightly more useful. What do others use to assess strategies in order to inform where to focus?
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ShaunWhite
Posts: 9731
Joined: Sat Sep 03, 2016 3:42 am

PL/Turnover (sum of back and lay stakes).

But the only things that matter are cash in the bank, and for choosing a project, scalability. Strike rates and RoI are vanity.
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decomez6
Posts: 651
Joined: Mon Oct 07, 2019 5:26 pm

ShaunWhite wrote:
Thu Dec 08, 2022 1:16 pm
PL/Turnover (sum of back and lay stakes).

Strike rates and RoI are vanity.
In the selling and buying of risks the ODDS available will determine your SR% and RoI.
E.g. if the strike rate on even 50/50 bets is greater than 50%.. you could deploy a kelly staking on a percentage of your bank thus compounding your returns on investment.

despite fill rates and liquidity , if your strategy manages the same strike rate of over 50% with an entry of + or - 10% of Bsp as your opening bet . then i believe vanity is in the hands of the beholder :)
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