Originally <a href='http://www.sportsbookreview.com/forum/showthread.php?p=17760568'>posted</a> on 02/08/2013:
- arbing generates constant, riskfree profits, but less profit then value betting
- value betting HAS RISKS, needs Bank Roll management, but gives more profit
- you can't lose any money when arbing cause of CHANCE
- you can lose all your money with value betting cause of CHANCE (although the probability gets smaller and smaller the bigger the bankroll gets, the posibility of losing all your money cause of chance, exists)
- with arbing there is no need for risk management
- with value betting risk management is essential
Conclusion?
Arbing = sure less profit = how Betfair exchange makes money
Value Betting = small risk, but bigger profit = how Pinnacle makes money
*sure profit = the absence of chance
Giving all of the variables involved, we can clearly state that the profit from Arbing is a strictly increasing function, while Value Betting profit is not, although it tends to be.
- arbing generates constant, riskfree profits, but less profit then value betting
- value betting HAS RISKS, needs Bank Roll management, but gives more profit
- you can't lose any money when arbing cause of CHANCE
- you can lose all your money with value betting cause of CHANCE (although the probability gets smaller and smaller the bigger the bankroll gets, the posibility of losing all your money cause of chance, exists)
- with arbing there is no need for risk management
- with value betting risk management is essential
Conclusion?
Arbing = sure less profit = how Betfair exchange makes money
Value Betting = small risk, but bigger profit = how Pinnacle makes money
*sure profit = the absence of chance
Giving all of the variables involved, we can clearly state that the profit from Arbing is a strictly increasing function, while Value Betting profit is not, although it tends to be.