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freak and 'j' posed questions about scalping. 'j' asked what to do if team A was -125, team B was +130 and he had $1000 to wager.
To get the general result you have to set it up algebraically.
Let F be the amount you are going to wager on the favourite and let D be the amount you are going to wager on the dog. Let f be the payoff on the favourite and let d be the payoff on the dog. By payoff I mean for example that if you are betting the favourite at -125 then you lay 125 to win 100 and the payoff will be 225 / 125 or 1.8 dollars per dollar bet.
If the favourite wins you want your profit on the favourite to cover your loss on the dog and vice versa. The optimal result is for your profit to be the same no matter what happens.
The equations you have to solve are:
F + D = 1000
Ff = Dd
Solving you get
D = 1000 * f / ( f + d )
F = 1000 * d / ( f + d )
Using 'j's numbers you get
f = 225 / 125 = 1.8
d = 230 / 100 = 2.3
f + d = 1.8 + 2.3 = 4.1
D = 439 (rounded off to nearest dollar)
F = 561
You can check the result. If the favourite wins the profit is Ff or 1009.80 If the dog wins the profit is Dd or 1009.70 In both cases you've turned a profit albeit not a huge one.
AussieVamp2 said exactly what I am saying here but he didn't give as much detail.
'mute
To get the general result you have to set it up algebraically.
Let F be the amount you are going to wager on the favourite and let D be the amount you are going to wager on the dog. Let f be the payoff on the favourite and let d be the payoff on the dog. By payoff I mean for example that if you are betting the favourite at -125 then you lay 125 to win 100 and the payoff will be 225 / 125 or 1.8 dollars per dollar bet.
If the favourite wins you want your profit on the favourite to cover your loss on the dog and vice versa. The optimal result is for your profit to be the same no matter what happens.
The equations you have to solve are:
F + D = 1000
Ff = Dd
Solving you get
D = 1000 * f / ( f + d )
F = 1000 * d / ( f + d )
Using 'j's numbers you get
f = 225 / 125 = 1.8
d = 230 / 100 = 2.3
f + d = 1.8 + 2.3 = 4.1
D = 439 (rounded off to nearest dollar)
F = 561
You can check the result. If the favourite wins the profit is Ff or 1009.80 If the dog wins the profit is Dd or 1009.70 In both cases you've turned a profit albeit not a huge one.
AussieVamp2 said exactly what I am saying here but he didn't give as much detail.
'mute
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