Hedge Betting Formula

I currently have an Excel spreadsheet where I can figure out the appropriate hedge amount if I need to hedge, but I have to plug in numbers in a trial and error type fashion.

I've tried about 20 hedge calculators online, but they all give the wrong answer. As an example, say I bet $10 on a 2 team parlay to win $26. To hedge at -110 odds, I would single wager 18.85 on the other side of the second game to guarantee a $7.15 profit no matter the outcome of the second game.

I've looked at the formula for Arbitrage betting, but it doesn't seem to work with -

s1 = 10
s2 = ?
o1 = 2.6
o2 = .9090
r1 = 26
r2 = ?

where s = stakes, o = odds and r = results.

Anyone have a formula handy to calculate a maximum profit hedge no matter which side of the last game wins?

Thanks in advance.

Thou shall not hedge thy bets unless it involves life changing amounts

Quote: Wavy70

Thou shall not hedge thy bets unless it involves life changing amounts

Agreed completely; however, this is a question that has been bugging me because it seems so easy, yet it's definitely not as straightforward as one would think. This is more a math question than a hedging question really.

Nevermind everyone, figured it out this morning. Just needed to walk away for a bit to get the answer I needed.

I think there may be a typo in your original post, and that the odds should be 1.9090 rather than .9090

but for the benefit of the others...

If the odds of two events, say a boxing match are

Holyfield 1.909
Tyson 2.6

divide 1 by each of the odds to give 0.524 and 0.385 respectively
(if this is less than 1.0 you have an edge)

Now multiply your target winnings by this number to work out your bet.

So you would bet $100 * 0.524 = $52.40 on Holyfield
and you would bet $100 * 0.385 = $38.50 on Tyson.

Total bet = $90.90 profit = $9.10

EDIT

Right now you bet on the NHL Washington vs Newyork @ 1.714 and 2.700 for a profit of 4.6%