Paroli

paroli

Paroli is a portfolio management technique that forces you to place bets using only your winnings. It is therefore a system that is greatly appreciated by gamblers who are not risk takers.

Principle of Paroli

Paroli is a betting system where you play only with your profits. It is consequently a way for you to keep your initial capital intact, unless you lose your first bet.

This technique can therefore be short-lived and stop as early as the first bet. We advise you to place your first bet on an outcome you are almost 100% certain of.

Example

You have a £100 bankroll and you set a goal of a £10 benefit. You reserve £10 of your bankroll for Paroli.
You bet £10 on small odds.

You decide you will play on Bet365 and bet on a victory for Spain, playing a football match against England at home. The odds are small (1.52), but the chances for your bet to be winning are high.

If Spain actually wins, you win a benefit of £5.20 and your new bankroll is £105.20.

Then, you will bet only with this profit of £5.20. For your second bet, you choose for example odds of 2.50 and place your bet on a victory for Portugal against England, still in football, on Sky Bet.

If you lose, your bankroll is back to £100, i.e. its initial level before your first bet. You then have to start the technique again from the beginning.
If you win, you earn £5.20 x 2.50 = £13. Your net profit is £13 - £5.20 = £7.80. Your account is therefore £105.20 + £7.80 = £113 in credit and your goal of a £10 benefit has been reached. Put those profits aside.
If your goal had been £20, the amount of your 3rd bet would have been £13 (the addition of your first 2 benefits).

You can use this technique all over again indefinitely.

A more cautious variation of Paroli

You can play in an even safer way by putting aside a percentage of your benefit (25%, for instance) for every bet.

If we use the two bets in the example above:

  • After your first bet, you put aside £1.30 out of your £5.20 benefit, and you play with only £3.90.
  • Your second bet is then played as follows: £3.90 x 2.50 = £9.75, i.e. a benefit of 9.75 – 3.90 = £5.85.
  • Then, you put 25% of £5.85 aside, i.e. around £1.40, and you play your third bet with £8.35 (£3.90 + £4.45).

You keep going until you reach your goal.

Your profit goal will take much longer to be reached, but when you lose a bet you still have benefits in your bankroll, provided you win your first bet.

This variation of Paroli is useful if you are used to betting on big odds and therefore placing risky bets. However, you should not be too daring for the first bets of your series.