Arbitrage Profit Margin

Questions concerning setup and general performance

Re: Arbitrage Profit Margin

Postby ihraf » Tue May 19, 2020 6:56 pm

Sorry bro but the way you calculate the profit margin isn't right,

For your example, let's take the two way odds 3,05 and 1,4

First you need to calculate the PAYOUT of the odds :

So we are gonna convert this odds to probabilities :

1/3,05 = 0,327868852
1/1,4 = 0,714285714

PAYOUT = (1 / (0,327868852 + 0,714285714)) * 100 = 95,95505618 %

PROFIT MARGIN = 100 - PAYOUT = 4,04494382 = 4,05 (Rounded to be exact)

And as you can see this is the same number shown by Odds Wizard.

;)
ihraf
 
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