Gains for the Premier League Fund and losses for the Championship Fund left a net gain overall for the Trading Fund when the two were put together this weekend. Looking at the historic performance of the Championship Fund shows that a considerable amount of the gains come from a few wins at long odds. This may leave that Fund under water for a considerable time. It could also continue to weigh on the performance of the Trading Fund. This season could therefore see the Premier League Fund shine as it continues to impress.

Turning to individual matches this weekend, Middlesbrough was a large gain increasing the Premier League Fund by over 8%. It was just a shame the final game of the weekend hit the Fund for almost 6% as Newcastle held Man U to a draw. There were no large gains/losses on the Championship which is to be expected as i’m running it on a low risk strategy until it proves itself. Continued

Good results for the Premier League Fund yesterday with a gain of around 14%. The Championship Fund lost for the second week however offsetting the gains in the Trading Fund. Whilst having a second fund was supposed to reduce volatility, having the same fund always winning and the other always losing was not what I had in mind.

As for today, i’m looking for home wins in all 3 Premier League matches.  I’m not making any adjustments to the tips in the Trading Fund.  Whilst Ronaldo is injured for Man U it hardly puts a large hole in their squad.  It will of course be interesting to see Scolari start at Chelsea and whether Keegan can continue a good finish to last season.  Also what sort of season will Man City have under Mark Hughes while the owner Shinawatra faces an arrest warrant from Thailand? 

Finally it’s here.  The long awaited new season of the Premier League kicks off with Arsenal v West Brom at 12.45pm on Saturday 16 August.

I must have been feeling aggressive when I wrote in my Premier League preview I would stake a maximum 20% of the betting fund on each bet this season.  Whilst it does give the largest return historically i’m just not willing to live with the wild returns that a losing run of bets would create.  So i’ve had what I hope is a moment of clarity and am setting the stake at a maximum 10%.  As for the largest bet thrown up by the model, i’m looking for an upset with Middlesbrough at home beating Spurs.

Continued

Here we are back for another season.  This season i’m including the Championship in my coverage.  The tips are now shown on the relevant pages under each Fund, links at the top of this page.  I haven’t had time to consider how I will adapt the Trading Fund tips on this first day - sure it’s only been 3 months!  But a general note is that I will only make changes to the tips thrown up by each algorithm if there is significant news.  I may adapt this appoach as we move through the season as I learn more. 

First match is Birmingham v Sheff Utd - come on you Blues!

Following on from the Premier League Fund, I have adapted the algorithm to the Championship.  As well as adding profits, the addition of a second Fund should also reduce the overall volatility of total invested funds.  This is Markowitz portfolio theory working its statistical magic.  Volatility is reduced since the performance of the Premier League and Championship models are completely uncorrelated.

Continued

Still a few weeks to go until the start of the Premier League for 08/09 but I thought I would lay out the expectations for the performance of the Funds for next season. 

After improving the algorithm, the greatest decision i’ve had to make is what level of risk to take.  On the one side, increasing stakes lead to higher returns but at the same time adds to the volatility of the Fund.  The biggest change in the current model over the model used for last season is a vastly reduced stake size.  The question is, how much volatility am I now comfortable with?

Continued

Following the success of last season, my thoughts obviously turned to whether this can be repeated. Or more accurately, what can be expected from the algorithm betting model in future seasons both in terms of return and the variability of those returns.

“Monte Carlo” is the name given to simulations which make use of computer generated random numbers to identify the range of possible outputs a model may generate in the ‘real world’.  Each random number generates an input from a user defined probability distribution which is run through the user’s model to produce a simulated outcome on each run.  Run this simulation thousands of times and you generate a probability distribution for the output of your model.

Continued

Well, that’s it; the end of the season. A very profitable one apart from this final week. Whilst there was no financial gain for the Balanced Fund in this last week there was a lot to learn from the divergence in the market’s and model’s odds on the relegation and title games.

Quite simply the Balanced Fund model took no account of the impact of the final week relegation and title battle. Hence it was drawn into betting against Birmingham, Fulham and Reading who fought against relegation. The same went for Everton and Villa who were fighting for the last European place. It also backed Wigan and Bolton against Man U and Chelsea as they fought for the title. In all, 7 matches were influenced by the relegation/title race which the market took account of in it’s odds.  The Balanced Fund lost on 5 of these 7 bets. Continued

This final week has thrown up some interesting odds on the betting exchanges as teams battle it out for the lucrative prizes at both ends of the table.

The odds which stand-out the most for me are not any one team’s odds in isolation but the comparitive odds of the teams playing the potential title winners, Man Utd and Chelsea. Wigan are at odds of 15 (too high) at home to Man U and Bolton at 24 (too low) away at Chelsea. Bolton must not win if Chelsea are to lift the title. Chelsea have not lost at home since I was knee-high. Man U could lose and still take the title. Bolton are in poor form and Wigan playing well.

If Wigan only have a 7% chance of winning at home surely Bolton have less than a 4% chance away? Or the converse is true. Either way the gap should be wider. Continued

All funds gained this week with the largest win coming from backing Fulham against Birmingham. The best ROI came from laying Villa at home to Wigan. The Balanced Fund only managed 5 winners from 10 but still gained 4.7%. The Trading and Aggressive Funds gained over 14% and 12% respectively with 8 winning bets from 10 matches.

Although these are good gains in one week they come at a price. The Trading Fund risked more than the value of the Fund in the 10 matches when aggregated compared to an equivalent figure of below 30% for the Balanced Fund. Continued