Sports Arbitrage Betting - Starter Guide
This starter guide is only for members who have signed up for our Sports Arbitrage Alert Service.
New users to sports arbitrage betting may read the following articles instead:
The above articles should give new users more information on sports arbitrage betting.
Starter Guide for Our Members
This article will explain how you can become a successful sports arbitrage trader and make those risk-free profits you always wished to, using your resources and our sports arbitrage betting alerts.
A professional sports arbitrage trader can make more than £5000 each month. This section intends to take you through the process of starting out small and growing into your own distinct style of ‘professional’. Assuming by this point you have gone through the introduction and you understand what arbitrage is, and that you know about out alert service, e-wallets and bookmakers, we will start to connect the dots for you now.
First let us take a look at the basic setups you need to start with:
- Medium Specification PC
- Fast Broadband Internet Connection
- Mobile Phone
- Trading Capital
Medium Specification PC
You will need at least a medium specification PC. A faster PC is always better and can speed up things, while a slower PC is not recommended as it can dramatically slow down your entire trading process.
Fast Broadband Internet Connection
This is a must. An always-on broadband connection to the internet is extremely important. Broadband connection makes it much quicker to access bookies sites and therefore gives you a better chance of placing your bets before the odds change.
A mobile phone is required to get SMS Alerts from us, when we find an arb of your interest and you are not logged into the Members Area. This way you do not need to sit in front of your PC and wait for arbs to appear. SMS Alerts will be sent to your mobile phone when you are away.
Your trading capital is the major factor which decides how much profits you make. We would guess the bare minimum bankroll to get started in sports arbitrage would be around £500. But the growth of that £500 would be very slow and tedious. For a more comfortable growth rate, around £3000 minimum will be enough to yield a good profit.
We find thousand of arbs per month and the average profit of an arb is about 5%.
Please see our past results at http://www.arbets.com/past_results/
By placing a minimum of 2 arbs per week, you can easily make a profit of £1200 per month with £3000 bankroll. That is 40% profit per month on your capital by just placing 2 arbs per week.
Once the initial setup has been established, you will need to open e-wallet accounts & register at some bookmakers.
E-wallet accounts are an important part of arbitrage trading, because you will have to use a fast and secure way of depositing & withdrawing your funds from the bookmakers.
Two of the popular e-wallets are:
- Moneybookers (www.moneybookers.com) - Moneybookers is arguably the best e-wallet for the purposes of sports betting arbitrage. It is accepted by the majority of online sportsbooks as a method of deposit and withdrawal, often free from fees. Moneybookers accepts membership from every country in the world, except countries listed by the OECD. Moneybookers accept every major currency, and most other common currencies.
- Neteller (www.neteller.com) - Neteller is the second contender for the best E-wallet for sports betting arbitrage. Neteller is accepted in approximately as many places as Moneybookers, perhaps even more, but they only accept four primary currencies (USD, EUR, GBP, CAD), they have larger fees, and more limitations.
There are other e-wallets, but only Moneybookers & Neteller are accepted by almost all bookmakers. You will have to open an account with any of these e-wallets and transfer your capital to the e-wallet account. All your trading capital should be managed at the e-wallet account.
After the capital is transferred to your e-wallet account, you will need to register at some bookmakers.
Please see a list of bookmakers we use at http://www.arbets.com/bookmakers/
It is not compulsory to register at each and every bookmaker to become a successful arbitrage trader. Please see the list of bookmakers we use and the top performing bookmakers at the above webpage.
It is recommended to register at minimum 5 different bookmakers, to maximize your trading capabilities.
From our experience, we have found out the following 5 bookmakers to be most profitable for our customers:
- Pinnacle (www.pinnaclesports.com) - Click Here for Review
- Bodog (sports.bodog.com) - Click Here for Review
- Ladbrokes (www.ladbrokes.com) - Click Here for Review
- BetCRIS (www.betcris.com) - Click Here for Review
- BetUS (www.betus.com) - Click Here for Review
These 5 bookmakers not only generate a huge number of arbs among themselves, but are also regarded as some of the most stable and trusted sportsbook in sports betting industry. It is highly recommended to open accounts with these 5 bookmakers. You may also register at other bookmakers of your choice, as there is no harm in using more bookmakers. But 5 bookmaker accounts should be bare minimum.
At this moment, you are not required to fund any bookmaker accounts. We will inform you when its is required. Please maintain your capital at the e-wallet account.
Paper trading is a very brief stage of the learning curve. You are not required to hold any funds with the bookmaker accounts in order to paper trade. The main purpose here is to know what the sports are, how to find the sports, learn how to find the right bets and to learn what the bets mean.
Whenever you receive an arb alert from us, you will have to study the arb completely. Then click on the links provided in the arb to proceed to the bookmaker website. Then you will need to learn how you can move to the page where the betting event is located. At the betting page, you have to re-confirm the odds are correct for arbitrage to exist. After this is done, you have to learn how you can actually place the bet from that page. Each bookmaker has a different method by which bets are placed, so you will need to learn small details like which button to click and what to select to finalize a bet. You are not required to actually place a bet now (as your bookmaker account has no fund, you cannot finalize a bet anyway), you have to just learn the process. Surf to the right location, check it. Make sure you understand it and the odds make sense and everything works out.
Please do paper trading for atleast first 2 weeks, using 30 to 40 arbs with different bookmakers. This will only increase your confidence while placing the real bets.
Free Bets and Bonus Hunting
Once you have the knowledge of paper trading learned, try depositing (but not necessarily betting anything at first) some funds into your bookmaker account now. Many bookmakers offer first time users a signup bonus in the range £10 - £200 for depositing an initial amount.
They typically demand that this amount is wagered a number of times before the bonus can be withdrawn. Bonus sport arbitraging is a form of sports arbitraging where you hedge or back your bets as usual, but since you received the bonus, a small loss can be allowed on each wager (2-5 %), which comes off your profit. In this way the bookmakers wagering demand can be met and the initial deposit and sign up bonus can be withdrawn with little loss.
The advantage over usual betting arbitrage is that it is a lot easier to find bets with an acceptable loss, instead of an actual profit. Since most bookmakers offer these bonuses this can potentially be exploited to harvest the sign up bonuses. Each offer you find which sounds reasonable, register at that book, deposit the appropriate amount to get a good value bonus/free bet, then arb the bonus/free bet out.
This could continue for weeks or months before you work through every sportsbook you are interested which offers bonuses and free bets, and by that point you should be a reasonably confident arb trader as well as the owner of a significantly larger bankroll.
Low Volume Trading
OK now is the time for some real sports arbitrage betting action. You will have to start off with very low volume trading and gradually increase your trading volume as you grow in confidence.
The point is really that in the beginning, you are much better off being too slow and missing the arb than you are rushing yourself and making a stupid mistake. More arbs will come, and as you keep repeating this process, your own natural speed will increase.
Please start with £10 to £25 trades (make it as small as you can get away with, without the rounding introducing a potential to lose on one side). And then grow your trades from there as your confidence grows. As you continue improving your own confidence, you continue adding new bookmakers to your trade list.
Low Volume Trading is an important phase of becoming a professional sports arbitrage trader. This should be done for atleast 2-3 months before you start placing high volume bets. From the 2-3 months low volume trading experience, not only will you master the art of sports arbitrage betting, but your bankroll will also grow significantly.
Triple Check Method for More Protection
In the opening months you should triple check everything:
- Triple check the odds on arb you have are for the correct bets.
- Triple check when the game will be played.
- Triple check you have the right game in the right league with the right teams.
- Triple check that the odds at the bookmaker are the odds reported by the arb alert.
- If they aren’t, triple check any re-calculations you make if it is still an arb.
- Triple check your bets. Have you placed the right amount in order to maximize the arb?
If, after all of that checking everything is still in order, then you very quickly take one reliable bookmaker to the final confirmation page. Go to the second bookmaker and submit that bet. Wait the 2 second to make sure that bet has been accepted. As soon as it has been accepted submit the bet at the first bookmaker.
The Power of Compounding
Compounding your winnings is a really good way to make big profits. If you place a £100 arb, and win £102, then your next arb should be a £102 bet, and so on.
As an example - if you start betting with £100 arb, and compound it every day, you could turn that £100 into £137,740 in 12 months, based on an average profit rate of 2%, but this could be even higher!
Managing Your Bankroll
The true essence of money management really comes down to bankroll management. During any trading, you have to learn to manage your bankroll for greatest efficiency. The bankroll should have maximum liquidity. The amount of funds on hold should be kept as low as possible, ensuring funds are always available at the right bookmaker at the right time to place all of the good arbs.
It is not recommended to divide your total capital and deposit it into the bookmakers account, completely emptying the e-wallet account. This is a common mistake which new arb traders do. For example a new arb trader having an initial capital of £1000 often end up depositing £100 into 10 different bookmakers. This is not recommended and can be regarded as bad bankroll management, as most of the funds are locked up. The problems arise when you run out of funds in a particular bookmaker and your e-wallet account is empty. By that time you make a withdrawal request at a bookmaker which has funds, but the withdrawal can take some time (1 to 3 days). So you will end up locking your funds for many days.
The most effective way to manage the bankroll is by keeping 50% of capital in the e-wallet account and depositing 50% of capital equally among the bookmakers you wish to use.
Suppose your total capital is £2000 and you wish to use total 5 bookmakers, you have to:
- keep £1000 saved in the e-wallet account, for future use
- deposit £200 into 1st bookmaker
- deposit £200 into 2nd bookmaker
- deposit £200 into 3rd bookmaker
- deposit £200 into 4th bookmaker
- deposit £200 into 5th bookmaker
Whenever you trade some arbs, there are chances that some of your bookmaker accounts might run out of funds. This happens because in any arbitrage bet, one bet wins at a bookmaker, while the bet at other bookmaker involved loses. So you will always end up having lots of funds at some bookmaker accounts, while no funds at other bookmaker accounts.
If you manage your bankroll as suggested, whenever you run out of funds in a particular bookmaker account, you can transfer funds from the e-wallet account. Depositing funds from an e-wallet account is free and instant in almost all the bookmakers. So it is always recommended to maintain a good balance at your e-wallet account, as you can always use it as instant money.
By the time your e-wallet account balance comes to nil, you will need to make withdrawal requests from your bookmaker accounts. Most bookmaker offer a free withdrawal once a week or so. You can use the free withdrawal to get funds back to your e-wallet account. Withdraw enough to reset bankroll back to the initial state (50% at e-wallet & 50% among bookmakers).
Using a Betting Exchange
Traditionally sports arbitrage betting involves placing bets with different bookmakers to exploit the difference in odds to return a guaranteed profit. The use of a betting exchange does exactly the same thing but holds two distinct advantages over placing your bets with bookmakers alone:
- It will save you time. If you use an exchange, you only have to place 2 bets, to back or lay. You can also save time by reducing the number of bookmaker accounts you are monitoring and have open.
- A betting exchange will place no restriction on successful punters. Therefore by placing half your bets with an exchange, you are reducing your potential exposure to bookmakers that may limit or restrict your account. Using a betting exchange will help prolong the life of your bookmaker accounts.
Of course you will still have to use some bookmakers, to make money for significantly longer without fear of restriction.
Damage Limitation using Betting Exchanges
Another often-overlooked use of a betting exchange can be in a damage limitation exercise.
Picture the following scenario:
You have placed 2 out of 3 bets in straight Match Odds football bet. You have just clicked confirm for the 3rd bet when the size of your stake gets rejected. You can of course spend some time looking for comparable odds elsewhere and try and save the arbitrage bet. However the best course of action is to accept that this bet got away.
Reduce your exposure and look to cover your bet as soon as possible. Using an exchange here allows you to complete the bet without any worries of the bet being rejected and you will probably find that the odds on offer will be better than that of the bookmaker.
There are huge advantages in using a betting exchange, not just for arbitrage but for general betting too.
However there are 2 key points that you must keep in mind regarding betting exchanges:
- Commission - All exchange winnings pay a commission, usually between 2% and 5% depending on your volume of betting. This can wipe out any arbitrage profit but in a damage limitation exercise this should not be a factor.
- Liquidity - You can only take what is available. If you are betting on an obscure event some days in advance, it may well be the case that there is little liquidity available on the exchange and you may have to take the odds from a bookmaker.
Remember if you are organized and quick, changing odds should not be too big a problem. Have two or three browsers open at once and have all your bets entered and lined up ready to just confirm. If it does go wrong in the middle of placing your bet, then look to see what money is available on an exchange. You should only be looking at a small loss in percentage terms. Put it down to experience and move on to the next opportunity.
Sports Arbitrage Betting may seem difficult in the beginning, and the truth is it has a steep learning curve. But any legitimate opportunity to work at home and make a good profit at the same will always involve real work. Once you master the few basic principles and continually apply the above triple check steps, you will very quickly improve the rate at which you can place an arb. Your mind will be triple checking everything as you go, and you will flow through the whole process without needing to think about it. But in the beginning, you have to take it slow!
The total learning process should take minimum 3 months. Low Volume Trading and Managing your Bankroll should be practiced well. By the time you have mastered bankroll management and have confidence in low volume trades, you can make the move to high volume trades.