ROI

ROI shows the efficiency of a strategy — how much profit it generates relative to the total stake amount. Formula: ROI = (Profit / Turnover) × 100%. The metric allows comparison of strategies with different stake sizes and turnover.

ROI is calculated from turnover

ROI is calculated not from the bankroll or deposit size, but from turnover — the total sum of all stakes. For example, if 100 bets of 10 units were placed, turnover is 1000 units. The bankroll itself could be much smaller because the same money was reused multiple times.

ROI = (Profit / Turnover) × 100%

If with a turnover of 1000 units the strategy brought 70 units of net profit, its ROI will be 7%. This means that on average every 100 units staked brought 7 units of profit.

How to evaluate ROI

A positive ROI means that the strategy brought a profit for the selected period.
A negative ROI means that the total sum of losses turned out to be greater than the sum of wins.
A high ROI with a small number of bets may be the result of a random lucky streak.

ROI should be evaluated together with the number of bets and the length of the test period. The larger the sample, the more reliable the result. For example, a 50% ROI after ten bets is much less meaningful than a 7% ROI after several hundred bets.

How ROI differs from profit

Profit shows how much money the strategy earned, while ROI shows how efficiently the turnover was used. For example, two strategies brought 70 units of profit each. If the turnover of the first was 1000 units, its ROI is 7%. With a turnover of the second strategy of 7000 units its ROI is 1%. With the same profit the first strategy turned out to be more efficient.

How ROI is calculated in BetLab

In BetLab ROI is calculated from the results of all algorithm signals for the selected period. The metric is displayed in the algorithm statistics, retroanalysis results and bot ranking. The number of signals is shown next to it so that not only profitability but also sample size can be assessed.

Related terms

Passability Hit rate shows the share of winning signals. For example, if 120 out of 200 settled bets won, the hit rate is 60%. The metric should be evaluated together with the coefficients: a high hit rate does not always mean a profit.
Avg. odds Average coefficient is the average value of the coefficients on the algorithm’s signals for the selected period. Together with the hit rate it helps to assess whether the strategy wins often enough to obtain a positive result.
Backtesting Retroanalysis, or backtesting, is checking an algorithm on an archive of played matches. BetLab applies the specified conditions to historical data and shows which signals the algorithm could have created in the past.
Algorithm statistics Algorithm statistics contain the main results of its signals: profit, ROI, hit rate, average coefficient, win and loss series and maximum drawdown. The data can be viewed for different periods and separately by matches and leagues.

All glossary terms