Through conservative money management and the power of compound interest, we can double, triple, or even quadruple our bankroll over the course of 1 year while doing our best to minimize risk.
Compound interest consists of nothing more than reinvesting our profits. It is a powerful concept that allows our bankroll to grow at a faster rate. Here’s an example:
Let’s say we start out with a bankroll of $5,000 and wager 1% of our bankroll ($50) on each pick. If we were to win 100 units over the course of 1 year, we end the year with a bankroll of $10,000. In other words, we doubled our money and realized a return on investment (ROI) of 100%.
($10,000 - $5,000) / $5,000 = 100%
If, however, we were to reinvest the units that we win back into our original bankroll of $5,000, we end the year with $13,524.
$5,000*1.01^100 = $13,524.
This represents an ROI of 170%.
($13,524 - $5,000) / $5,000 = 170%
What if we were to win 125 units over the course of 1 year?
$5,000*1.01^125 = $17,344
This represents an ROI of 247%.
($17,344 - $5,000) / $5,000 = 247%
What if we were to win 150 units over the course of 1 year?
$5,000*1.01^150 = $22,242
This represents an ROI of 345%.
($22,242 - $5,000) / $5,000 = 345%
What if we were to win 100 units a year for 5 years?
$5,000*1.01^500 = $723,864
This represents an ROI of 14,377%.
Compound interest consists of nothing more than reinvesting our profits. It is a powerful concept that allows our bankroll to grow at a faster rate. Here’s an example:
Let’s say we start out with a bankroll of $5,000 and wager 1% of our bankroll ($50) on each pick. If we were to win 100 units over the course of 1 year, we end the year with a bankroll of $10,000. In other words, we doubled our money and realized a return on investment (ROI) of 100%.
($10,000 - $5,000) / $5,000 = 100%
If, however, we were to reinvest the units that we win back into our original bankroll of $5,000, we end the year with $13,524.
$5,000*1.01^100 = $13,524.
This represents an ROI of 170%.
($13,524 - $5,000) / $5,000 = 170%
What if we were to win 125 units over the course of 1 year?
$5,000*1.01^125 = $17,344
This represents an ROI of 247%.
($17,344 - $5,000) / $5,000 = 247%
What if we were to win 150 units over the course of 1 year?
$5,000*1.01^150 = $22,242
This represents an ROI of 345%.
($22,242 - $5,000) / $5,000 = 345%
What if we were to win 100 units a year for 5 years?
$5,000*1.01^500 = $723,864
This represents an ROI of 14,377%.
All of these numbers are great, but they mean nothing if we can’t generate positive units on a steady and consistent basis. By using past results to help guide future wagering decisions, I believe that I have come up with a strategy that can achieve a steady and positive flow of units.
Here’s how it works:
1) We make as many as 10 picks per day but never more than 10 and we never risk more than 1% of our bankroll on any pick. This ensures that we never risk more than 10% of our bankroll on any given day. There are a couple of reasons why I like making up to 10 picks per day as opposed to some smaller number:
a) It spreads out our risk across a larger number of picks.
b) It allows for greater flexibility during the fall and winter when there are multiple sports leagues in action. The MLB, NBA, NHL, NFL, NCAA football, and NCAA basketball schedules all overlap to some degree during the fall and winter. Making up to 10 picks per day allows us to better take advantage of a larger menu of games during this period instead of “straightjacketing” ourselves to just a few picks per day.
2) We increase the size of our wager (but not the percentage) every time we increase our bankroll. For example, if we start out with a bankroll of $5,000, we risk $50 ($5,000*1%) on each pick until our bankroll surpasses $5,000.
If after the 1st day we were to win 1 unit, we now have a bankroll of $5,050. $5,050 becomes our “new” bankroll and we now risk $50.50 ($5,050*1%) on each pick. We continue to risk $50.50 on each pick until we surpass our “new” bankroll of $5,050.
We never adjust the size of our wager downward. We continue to flat bet 1% of our "new" bankroll until we surpass our "new" bankroll.
Here’s how it works:
1) We make as many as 10 picks per day but never more than 10 and we never risk more than 1% of our bankroll on any pick. This ensures that we never risk more than 10% of our bankroll on any given day. There are a couple of reasons why I like making up to 10 picks per day as opposed to some smaller number:
a) It spreads out our risk across a larger number of picks.
b) It allows for greater flexibility during the fall and winter when there are multiple sports leagues in action. The MLB, NBA, NHL, NFL, NCAA football, and NCAA basketball schedules all overlap to some degree during the fall and winter. Making up to 10 picks per day allows us to better take advantage of a larger menu of games during this period instead of “straightjacketing” ourselves to just a few picks per day.
2) We increase the size of our wager (but not the percentage) every time we increase our bankroll. For example, if we start out with a bankroll of $5,000, we risk $50 ($5,000*1%) on each pick until our bankroll surpasses $5,000.
If after the 1st day we were to win 1 unit, we now have a bankroll of $5,050. $5,050 becomes our “new” bankroll and we now risk $50.50 ($5,050*1%) on each pick. We continue to risk $50.50 on each pick until we surpass our “new” bankroll of $5,050.
We never adjust the size of our wager downward. We continue to flat bet 1% of our "new" bankroll until we surpass our "new" bankroll.
By taking advantage of compound interest, we can double our bankroll by winning 70 units, triple our bankroll by winning 111 units, and quadruple our bankroll by winning 140 units:
$5,000*1.01^70 = $10,034
$5,000*1.01^111 = $15,088
$5,000*1.01^140 = $20,136
If we flat wagered 1% of our original bankroll on each pick instead of taking advantage of compound interest, it would take us 100 units to double our bankroll, 200 units to triple our bankroll, and 300 units to quadruple our bankroll.
What I like best about this strategy is how powerful and conservative it is. We can make extraordinary profits without taking on extraordinary risk. We never have to sweat out the result of any particular game because we never risk more than 1% of our bankroll on any pick. We literally wager a penny on the dollar for each game. If we lose a particular game, so what? All we’ve lost is a penny. And we never risk more than 10 cents on the dollar in any particular day. We can go 0-10 and all we’ve lost is a dime.
$5,000*1.01^70 = $10,034
$5,000*1.01^111 = $15,088
$5,000*1.01^140 = $20,136
If we flat wagered 1% of our original bankroll on each pick instead of taking advantage of compound interest, it would take us 100 units to double our bankroll, 200 units to triple our bankroll, and 300 units to quadruple our bankroll.
What I like best about this strategy is how powerful and conservative it is. We can make extraordinary profits without taking on extraordinary risk. We never have to sweat out the result of any particular game because we never risk more than 1% of our bankroll on any pick. We literally wager a penny on the dollar for each game. If we lose a particular game, so what? All we’ve lost is a penny. And we never risk more than 10 cents on the dollar in any particular day. We can go 0-10 and all we’ve lost is a dime.
So, the ultimate question is this: How many units can we expect to win each year? In other words, by what percentage can we expect our bankroll to grow each year?
This is exactly why I have started posting my picks for free on Twitter. I want to publicly and transparently demonstrate how many units I can earn each year. My goal is to earn somewhere around 100 units over the course of 365 days. This would result in an ROI of 170% for 1 year.
I kindly invite you to follow my picks on Twitter while I try to demonstrate my ability to pile up positive units. I will update this website daily in order to track my progress and results. Please click on "Stats" under the header to view my archived statistics. Thanks for reading and good luck!
This is exactly why I have started posting my picks for free on Twitter. I want to publicly and transparently demonstrate how many units I can earn each year. My goal is to earn somewhere around 100 units over the course of 365 days. This would result in an ROI of 170% for 1 year.
I kindly invite you to follow my picks on Twitter while I try to demonstrate my ability to pile up positive units. I will update this website daily in order to track my progress and results. Please click on "Stats" under the header to view my archived statistics. Thanks for reading and good luck!