Unit Equalization is a money management strategy I have developed to keep wager amounts relatively equal to one another even though their underlying odds are vastly different. In doing so we are keeping the risk of each bet the same which is critical to proper money management. I formulated the strategy in response to the general practice sportsbooks use to vary the financial exposure bettors face when they wager on large favorites or underdogs. For example if our unit size is $1000 and we bet a +100 (even money) game, we are betting $1000 to make $1000, which is fine. This is right in line with our unit size. Now however, if we bet a -200 (1 to 2) favorite, suddenly we are betting $2000 to win $1000. Why the increase in possible loss and risk? We just wanted to bet $1000. It's because bookies like bettors to make big bets. Similarly, if you decide to bet a +200 (2 to 1) underdog, you are betting $1000 to make $2000. Why not have me bet $1000 to make $500? Again, why the increase in risk?

So what to do? It's quite easy actually. Just calculate the bet size so that the return when you win multiplied by the chance of winning, added to the amount when you lose multiplied by the chance of losing, equals your unit size. For example, if you are betting a -200 (1 to 2) favorite with a $1000 unit, you would bet $1515 to win $757. When you calculate 1515*0.33 (chance of winning this side of the bet is 2 to 1 against) plus 757*0.66 (chance of winning this side of the bet is 1 to 2 against) you get $1000, your unit size. For a +200 underdog, the amounts would be reversed. But in these and all other cases our average unit size across wins and losses is preserved.

The formula to use is as follows:

(U/2) / (1 - Odds%) = Risk Bet Amount

(U/2) / (Odds%) = Win Bet Amount

Where:

U = Unit Size

Odds% = Odds of bet. You must convert a Money Line to underlying odds. (e.g. 200 = 0.67, -150 = 0.60, +200 = 0.33). To do so, simply divide the Money Line by (Money Line + 100). For dogs subtract your result from 1.0 to get the final Odds%. For favorites, convert the negative Money Line to a positive by dropping the minus sign then divide by (Line + 100) and use rsults as is.

Here is a final example: Your unit size is $1000 and you want to bet a favorite at -175. You first convert this Money Line to a percentage and the result is 0.636 (175 / (175 + 100)). Then using the main formula, you get your Risk Bet Amount as (1000/2) / (1 - 0.636) = $1373 and your Win Bet Amount as (1000/2) / (0.636) = $687.

Follow this Money Management strategy and you should see steadier results.

(c) Parrish Heppenstall