This post is not a warning as such, but more of a post to make you aware that you have to look twice at a tipster’s results before presuming that a tipster with the most ‘points’ profit is the most successful…
There are issues with using a points system, which is why here at TerryTipster.com, we use single stakes at all times (for profit/loss purposed, we use £20.00 as our stake).
More and more tipsters use a points system to allow them to bet different stakes. The principle isn’t too bad, as it can allow flexibility when betting, and you can bet more on the fixtures you are more confident with. We have always used a single staking system… This avoids any confusion and also shows that we are equally as confident in each tip we give. This is by far the best option in our opinion, allowing you, the member to place as much or as little as you choose. We have members that have backed £1,000s on a single bet, and others that bet £5 or less.
The use of points can be extremely misleading. Some tipsters use a multiple of 5 points (5pt, 10pt, 15pt and so on) which, when they make a profit, inflates their perceived success. For example, Tipster 1 could bet 20pts per tip; give 100 tips in a month and then state that they’ve made over 100 points profit in the month… 100 points sounds great – £1000 at £10 per point, when in fact that is only a 5% return on investment (ROI) – and you’d have to be betting £200 per tip – very high risk. Then you have Tipster 2 who bets 1 point per tip, gives 30 tips, and wins 10 points. Tipster 2 gives a 33.3% ROI, but it looks as though they’ve been less successful than Tipster 1 – THEY HAVEN’T, see below:
|Tipster 1||Tipster 2|
|£ spent (£10 stakes)||£20,000||£300|
|Return on Investment||5%||33.3%|
The only TRUE reflection of betting success is someone’s return on investment (ROI). Risking £20,000 for a £1,000 gain (or £200 for a £10 gain) just isn’t worthwhile. The above is just an indication of how the numbers can be misleading. If you are unsure of a tipster’s ability/results, asked them for their ROI, and maybe even their results at single stakes.
I’ll give an example of how we could mislead by adopting a point system… Even though we bet the same amount every bet, we could say we stake 10 points for each bet. It’s absolutely irrelevant; an arbitrary number, but we can then say we have made more than 2,150 points profit. We have made 215 units of profit since we started, single stakes of 1 unit per bet.
We aim to keep our tips, staking system and website easy to understand. So if you have any questions at all, let us know.