Quote:
Originally Posted by ajikavix
Thanks!
No worries. You can also use this formula:
Edge = Market Price * Fair Probability
2.30 * .465 = 1.0695
As before, ~ 7%.
If you want to use American Odds then simply multiple the payoffs through by their probabilities via the following formula:
(Win Amt * Win Prob) – (Loss Amt * Loss Prob)
So if we plug in your #’s and risk $100:
($130 * .465) – ($100 * .535)
$60.45 – $53.50 =
$6.95
Once again, about 7 points in expectation. Obviously, if the bolded number is negative, you pass or better yet, book it!
Once you didn’t know how to do this, now you know 3 ways