Value betting is when there is the option to profit off odds of an event which don’t reflect the true probability of an event (there’s plenty more information on value betting here).
A simple way to grasp the concept of this is if let’s say Man City play Grimsby (Man City being one of the best teams in the world against a lower tier English side) and Man City were to be given odds 2/1 or 3.00. i.e. you place £1 and should Man City win which you’d almost guarantee to happen, you’d get your £1 stake back and £2 from the bookmaker, like printing money.
Now not all value betting options are as clear cut as this, but when you start seeing the probability of an outcome against whether the odds accurately reflect this or not, is where you begin to see value betting investment options. Obviously not every bet will win, which is why volume is important.
Key terms in value betting include expected value (what can you expect to win per bet), real value (the actual profit/loss of a bet), variance (difference between the expected value and real value), but there is a load more of information on value betting here.
Any markets which are available for regular betting. Value betting is usually targeted on traditional win/lose/draw markets in football, or winners of games in other sports. Ultimately it can be any sport or market where the value bettor is confident that they have an edge over the bookmaker’s odds, whether it’s from data, sharp book odds, information or other means to decide that the odds don’t reflect the probability of the outcome.
As with day trading, there is no set formula for ROI as bankroll, frequency of bets and luck plays a part – some months will be more fruitful that others.
Unlike day trading, there are platforms which can legitimately identify value bets to take out the hours of work required to find them yourself. This can obviously increase the amount of value bets you can place.
The ValueBetting service has shown to make an average yield of 3%.