POT
 

Have just received an email from a well known ratings/tips seller. they say their followers have made quote "52% profit on turnover. That is the same as making a $1.52 for every $1.00 outlayed". I feel that return represents 34%?

Explain why this is so.

pot
 

The formula is: return -outlay/return *100-----1.52-1.00/1.00*100=34%

POT
 

Sorry . Correction to last post. 1.52 - 1.00/1.52 * 100=34%

I guess my maths just not that good, can't work that one out.

Ok that works out but i still don't think it is the correct calculation for what you are trying to do.

Why are you dividing your profit in to the total return?

POT
 

Shaun
I'll try to explain another way.
1. You have $1.00 in your bank.
2. You have a $1.00 bet. Win Return $1.52
3. You now have $1.52 in the bank.
4. You have made .52c. .52c is 34% of $1.52. ie 34% pot.

You have only turned over $1.00, and made .52c profit, the POT is 52%.

T standing for Turnover.
Your T in this case is $1.
Your profit is .52.
Your POT is therefore 52%.

If they're offering 52% POT, run, run a mile, and run very fast.

Sorry Domenic, just beat me to it.

It's a bit like saying that you need to take away 20% of 100 and you get 80 but you need to increase 80 by 25% to get to 100 .....