A betting strategy (also known as betting system) is a structured approach to gambling, in the attempt to produce a profit. To be successful, the system must change the house edge into a player advantage — which is impossible for pure games of probability with fixed odds, despite many people's belief in their effectiveness. Betting systems are often predicated on statistical analysis.
Mathematically, no betting system can alter long-term expected results in a game with random, independent trials, although they can make for higher odds of short-term winning at the cost of increased risk, and are an enjoyable gambling experience for some people. Strategies which take into account the changing odds that exist in some games (e.g. card counting and handicapping), can alter long-term results.
This is formally stated by game theorist Richard Arnold Epstein in The Theory of Gambling and Statistical Logic as:
Examples Common betting systems include: Card games – Card counting Sports – Handicapping Martingale Kelly criterion Split martingale Anti-martingale d'Alembert system Oscar's grind
Horse racing Some horse racing betting systems can be based on pure statistical analysis of the odds, while others also analyze physical factors (e.g. the horses' form, jockey form and lane draw). Common forms of betting systems for horse racing are: hedging - betting on multiple outcomes in a race arbitrage - lay the horse a low price and back it at a high price.
See also Gambler's fallacy House edge Mathematics of bookmaking Parimutuel betting
References