Purpose: To understand the standard unit betting, as well as the methods that Capper University exercises with premium and general play bets.
Units are the best way to correlate risk values between large scales and differences of bankrolls. I am extremely surprised how often I speak to a potential client, or just general follower who has no idea what a unit value is. In many different ways this is a problem for myself as a handicapper, as well as the potential sports investor. By relating the percentage of a bankroll risked on a play, you can better compare and relate two sports investors with completely different bankrolls. At Capper University, we use a standard unit value of 1.5% of our bankroll. So, for instance if we are going to risk two units, we would risk 3% of our bankroll on a specific play. As a conservative investor, these higher risk plays are typically found in premium. In many ways, we tend to use lower risk plays. The largest play we've every given out was our Capper University Play Of the Year, which was a winning ticket. This was an eight unit play, and other than that play, I don't believe we've ever risked over three units. Using a lower percent unit value allows an investor to have security over longer stretches of time. This is an investment, not a "get-rich-quick scheme."
Currently, our risk values are based around a flat betting technique. We use a variation of flat betting in all general plays. For this example, if we are involved a one unit play. If odds are plus value (+110) then we risk the flat one unit in return for 1.1 units of profit. If odds are negative, (-120) we risk the 1.2 units to win one unit. This is just a small twist upon what is commonly known as the "to win", or "risk" methods, as it combines the two of them.
There are definitely simple red-flags which are shown by certain handicappers which in all other handicappers eyes is not only misleading, but shows a lack of transparency. Those handicappers which claim they just made 75 units? Yes, if you consider that a unit is .01% of a bankroll, then great job. Quite often these handicappers will never express their unit values publicly, and at first glance you would expect that they had nearly doubled their bankroll in just one day. There is no explanation for this, other than that it allows them to chase profit through 'added plays' and also draws attention to their paid packages and 'huge' successes of the day. Nearly all handicappers will label this as not being completely transparent and honest as it is not only against the norms of the industry, but is extremely misleading.
The take home point here is that through smart investing with any handicapping service- even if you decide not to follow our plays for some reason, you can overcome tough runs and still have a manageable bankroll. Unit values are not only a generalization of relating strengths of bets between bettors but also the best way to manage your bankroll for the long-term investment. If you are more interested in the thrill of risking one-third of your bankroll on each play, then you are not a long-term sports bettor and most likely will never see a return on any investment through the wonderful world of sports.
Best of luck, always,
Capper University