Money Management – Don't Gamble, Wager
At SGS we not only believe in Responsible Wagering, but we also believe that Money Management is equally Important. It’s one thing to pick a winning game, but it’s another thing to know when to increase or decrease our bets. In addition, it's important to manage our losses including hedging and other forms of sound money management.
Capital Preservation
When going into a casino, as a “Smart Bettor” we set a limit on our “Stake” or what we are willing to risk. Is it 1K, 2K, 5K, or 10k?
If we take 1K into the casino as a Smart Bettor, we would then want to wager accordingly so we preserve our Stake (or capital) in the event we lose our first few wagers. In other words, a Smart Bettor is not going to risk a large portion of their Stake on one or two bets. We have all seen the player at the black jack table suddenly bet big and lose. Unless you're counting cards, this is foolish money management. The goal is a steady way of wagering with incremental gains along the way.
However, the difference between the casino and SGS, is when we enter the casino the odds are stacked against us, but with SGS, the odds are definitely working for us, so the goal is to use those favorable odds to win, but we still need to preserve our Stake to survive a losing streak and losing streaks DO happen in sports wagering.
Smart Wagering
So, the first order of business is preserving our Stake but the second critical strategy is Smart Wagering. Just like we are not going to risk it all on one bet, or game, wagering too little is also not a smart move, especially if the odds are in our favor over the long run.
The goal is a balance of preserving our capital and wagering as much as possible, but also being able to survive a losing streak.
At SGS, we have spent years fine tuning the wagering strategies of our algorithm to maximize our individual wagers, while being able to survive the losing streak. Our proven algorithm not only gives us the probability of winning a game, but it also tells us how much to wager as a % of our Stake.
For example, if we have a Stake of 1K and we have a game with a 70+ probability of winning, our algorithm might have us bet $75. Conversely, if we have a game with a lower probability of winning, e.g. 65% our algorithm might have us bet only $20.
Obviously, the higher the probability of winning a game, the more we wager and as the probability of a win decreases, we wager less. This is Smart Wagering, or Money Management, and in the long run, if we do not know how to manage our money, we won’t win either.
The following table is a simple guide that we will show you for every one of our wagers. It will show what we wager with our 10K Stake and what we would wager if we had a smaller or larger Stake.
