Course No. ABM 401
Chapter 1: Getting Started
Welcome to Chapter 1 of Daily Fantasy Cafe's Advanced Bankroll Management Series. The series will consist of 7 Chapter's and give you a roadmap to successful, advanced bankroll management. The title of this Chapter, “Getting Started", will be just that. You will be introduced to the beginning of running YOUR OWN DFS BUSINESS.
This Chapter will include the below topics:
- 1. Understanding Your Own Business
- 2. Applying The Facts
- 3. Define Success
- 4. Next Steps
Understanding Your Own Business
“Knowledge is Power" – Sir Francis Bacon
Ask any successful entrepreneur any question about their business. The truth in their success lies in their answer. They can tell you the fluctuations in raw materials, return on investment for past 6 months or past 6 years, understand trends and ultimately explain their hopeful profitability.
Can you say the same? If I asked you your ROI (return on investment) in 50/50 games below 10$ level can you answer? How about your win rate in H2H games above 20$ Level? Finally, are you making more money in GPPs only allocating 20% while the other 80% in allocated to cash games?
If you answer without 100% certainty stop reading this article, data-mine your history and gain the facts.
We are all guilty of following the masses, taking the path of least résistance. The fact you are reading this article means that somewhere along the line you have been told to play roughly 10-20% of your bankroll per night and allocate that money to 70% cash games and 30% GPPs (or something very similar). That is fantastic! Great advice but won't take you to the next level.
The next level starts with Understanding Your Own Business and then…
Applying the Facts
Analyze a Sample potential summary for the above exercise.
Player A Business Summary – 5,000 Games Played
H2H Games – 1,500 Games Played – 6% ROI
50/50 Games – 1,500 Games Played – 9% ROI
GPPs – 1,000 Games Played – 20% ROI
3 Man Leagues – 500 Games Played – 14% ROI
10 Man leagues – 500 Games Played – 12% ROI
The above is a very realistic sample of what is going on within the industry. The bulk of Player A's volume is going toward sub 10% ROI games. To give this a profit analysis we will outline and compare H2H Games at 5,000 Games and GPPs at 5,000 games with an average stake of $2.00. (we will not include rake or bonuses to simplify the equation)
5,000 H2H Games @ 6% ROI @ 2$ Stake = $600 Net Profit
5,000 GPP Games @ 20% ROI @ 2$ Stake = $2,000 Net Profit
Over the course of 5,000 games player A has essentially left $1,400 of profit on the table for what reason? NOT KNOWING THEIR BUSINESS.
Do a similar outline for above for a specific sport to understand your most profitable business.
Success is defined as the accomplishment of an aim or purpose. What is your purpose of playing DFS?
This is essential to moving forward with YOUR BUSINESS. What is your desired income from DFS? Is this a hobby? Is it vacation money? Or is it money to add to your retirement account?
Understanding what you want will better help you plan on how to get there.
In the upcoming chapters we will build upon the foundations outlined above and go more in-depth on the amount of risk you are comfortable with (personal definition of success) as well as how you can structure your day to day bankroll management as well as other theories and to grow your Bankroll.