English Calculation of the necessary bankroll for arbitrage betting, considering the cost of purchasing a scanner, involves several factors, including the initial cost of the scanner, average profitability per bet, and the number of bets you plan to place. Here's a step-by-step guide:
1. Determine the cost of the scanner
Let the cost of the scanner be S euro.
2. Estimate the average profit per bet
Let the average profit from one bet be PPP rubles. You can calculate this based on your typical profit per bet after accounting for all costs.
3. Estimate the number of bets per month
Suppose you plan to place NNN bets per month. This number depends on your experience, frequency of using the scanner, and available time.
4. Calculate monthly profit
The monthly profit from bets, excluding the scanner cost, would be P×N
5. Account for scanner payback
To cover the cost of the scanner within a certain period (e.g., one month) S , your profit from betting should cover the scanner's cost. Therefore, the required monthly profit is:
P × N ≥ S
6. Determine the initial bankroll
Your initial bankroll should cover not only the scanner cost but also potential losses in the early stages. For instance, you can use the Kelly Criterion or conservatively set a bankroll to cover M average bets.
For example, if the average bet size is B euro and you want a bankroll that covers 100 bets (a conservative approach), the initial bankroll will be:
Initial bankroll = B × 100
7. Overall calculation
In the end, your initial bankroll should be sufficient to cover your bets until the scanner cost is recouped. For instance, you can calculate the bankroll as follows:
Initial bankroll = B × 100 + S
This calculation assumes that over time, your bets will cover the scanner cost, and the initial bankroll will help absorb potential fluctuations.
Example of scanner payback calculation:
Initial data:
- Scanner cost: S=100 euro
- Average bet size: B =50 euro.
- Average profit per bet: P = 2 euro.
- Number of bets per month: N = 100 bets.
Payback calculation:
- Monthly profit: 2 × 100 = 200 euro
- Scanner payback: 200 ≥ 100 meaning the scanner will be paid off in one month.
- Initial bankroll for betting: 50×100+100= 5100 евро
Thus, you will need a bankroll of 5100 euro to account for the cost of purchasing the scanner and to provide a sufficient buffer for your betting activity.