Explains what is yield

The definition and meaning of yield should be known by each and every betting player...

Table of contents:
  • What is yield?
  • The definition
  • How to calculate yield?
  • What does yield depend on?
  • How high should yield be?
  • Summary and conclusion
Posted by Tom
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What is yield?

The definition and meaning of yield should be known by each and every betting player. Yield ratio provides us with a percentage profit and is the most important ratio that is taken into consideration when it comes to bet analysis of the player.

The definition

Yield is a definition that at the beginning occurred only in the world of finance (actions, investments, bonds, mortgages, etc.) and its purpose was to specify how profitable an investment can be. With time, the phrase hit the bookmakers’ world and stayed in here once betting started to be regarded as investment.

Some pages also uses the term ROI, which is the abbreviation from Return on Investment. It is basically the percentage ratio of the sum of returned money to the sum of invested money.

How to calculate yield?

In order to calculate yield, we need to have two values:

  • The sum of profits – sum all the won bets and subtract the sum of all lost bets;
  • The sum of stakes – sum the stakes of all placed bets (returns as well).

Profit = win – stake = odds x stake – stake = (odds – 1) x stake.

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The sum of profits = the sum of wins – the sum of stakes.

Yield = the sum of profits / the sum of stakes x 100%.

Yield as determinant of the profits

Yield is the first and most important factor when it comes to checking the quality of a bettor as well as his or her strong sides. Everyone can calculate it very easily from the formula above in Excel based on the history of bets.

The interpretation of yield

If yield has got positive value, then the player earned money.

If yield has got negative value, then the player lost money.

It means that if yield is, for example 10%, then for every $1.000 placed on bets, the player received $1.100. If; however, yield is -5%, then for every $1.000 spent on betting, the player loses $50 and has got only $950.

More than 10 senor sumo wrestlers from Japan placed bets on the outcomes of matches in which they took part. In addition to that, they were also fixing them. One should remember that as a consequence of traditions and the values that we can find in Sumo wrestling, such scandal peaked in popularity very quickly and it shook the entire country.

What does yield depend on?

Yield as incomplete determinant

Yield itself cannot be used to interpret the skills of the bettor. It is very important to take into account the amount of bets and the type of odds (progression and stake values that are far from average stake will blur the image of bettor’s skills.

The amount of placed bets

Yield depends mostly on the amount of placed bets. One won wager with 2.0 odds give us yield of 50%. Two wagers like that provide us with yield of 100%. If; however, the player is about to place bets with 2.0 odds all the time, he will eventually lose and his yield will drop drastically. If we take into account 100 wagers with 2.0 odds each, then the player will most likely win 40-60 wagers. He will lose the rest. This is how yield looks after 100 bets of this type:

  • 40 won bets out of 100 with 2.0 odds and the same stake give us the yield of ((2,0-1) * 40 - 60)/100 * 100% = -20%
  • 50 won bets out of 100 with 2.0 odds and the same stake give us the yield of ((2,0-1) * 50 - 50)/100 * 100% = 0%
  • 55 won bets out of 100 with 2.0 odds and the same stake give us the yield of ((2,0-1) * 55 - 45)/100 * 100% = 10%

We can see how fast the value of yield can drop below 10%. The biggest fluctuations of yield occur at the beginning of betting (while creating the history of bets).

Yield usually drops and stabilizes as the number of bets in the archive grow. With time, it is more and more difficult to keep the yield on the appropriate level (there are plenty of factors that have impact on it, starting from bets quality and ending on psychological aspects). In order to interpret yield accurately, it is required to have at least 100-200 bets.

Type of stakes

Too diverse stakes and progressive systems can distort the picture of the bettor which was supposed to be provided by yield. It is due to the fact that the player who places extreme bets influence the yield quite drastically. Such bets bear no statistical value.

Let us take into account two situations. In the first situation, the player makes three bets with the same stakes and the same odds. In the second situation, the odds are the same. However, the stakes differ quite drastically. So, instead placing three $10 bets, he makes bets with $1, $10, and $100 stakes. Let us assume that their accuracy is pretty low and it is 33%, so they won one out of three bets. This example shows us that in case of extreme stakes, our funds can drastically go up or go down. Whereas in the case of the former bets, we can increase our funds steadily, so we have time to correct our mistakes.

Read also: Learn how to place sports bets

The skills of a bettor

There are many different tactics that bettors can use. There are ones which apply progressive betting and fixed wagers. However, if your bets don’t have value, then you have to work on the quality of your wagers. Changing your staking method will change nothing. Of course if you decide to place single, risk bets, then you can’t expect to have correct yield value. Placing one, risk type of bet with very large stake (usually to make up for the loss or take advantage of the “opportunity”) is contrary to the principles of safe capital building and it shows the immaturity of the bettor.

Read also: Is match fixing still a thing?

How high should yield be?

The meaning of yield

Yield is one of the most important parameter in betting. It is because it reflects the profitability of the investment and show us how much money we can earn (or lose) in a given time while betting. Majority of players are trying their best to obtain the highest yield it is possible. Others are just trying to get a positive yield and do not spend more time on that.

Just imagine yourself a bettor, who had $100.000 at the beginning and one year later, after placing 400 wagers, each one was $1000 worth, he had $110.000. It means that he earned $10.000. However, he spent 400 hours on analysis of all bets. Do you think he was satisfied with his outcome? His yield was only 2.5% and it was equivalent of $25 per work hour. It is definitely too little with such enormous asset.

There is a general conviction that if you are looking for good bettors, then you should look at people who have got from 10%-5% yield. If; however, you wish to find payable bettors, then it might be a good idea to look for bettors with 12%-6% yield.

Summary and conclusion

If you haven’t recorded the history of your bettors, then it is the right time to create it and assess the profitability of your bets. The article provided you with several crucial information. From now on you know that yield is presented in percentages and it can be positive or negative. You also know that we base our knowledge about bettors’ skills on their yield. Yet yield itself is not enough. Yield works best if we type stable stakes and very narrow range of odds.

Read also: How to find the right bookmaker?