DFS Diversification Blueprint of Balancing Risk and Reward

Matt Brown
By Matt BrownPublished: January 24, 2024
DFS Diversification Blueprint of Balancing Risk and Reward

As DFS professionals, we're always trying to gain the upper hand in the contests. To achieve this, we use various strategies and tactics, one of them being diversifying.

It sounds more like investment advice from your financial broker, but it's applicable in DFS as well.

Is this strategy foolproof? No, but we think it'll give you the edge you need to dominate in your DFS market.

The Importance of Diversification in Your DFS Lineup

If you're not diversifying, you're losing. Well, not all the time, but you're not winning as much as possible.

Here are a few reasons diversification is essential for your lineup—

  • Basics of DFS diversification. Diversification means spreading out risk. In DFS, it's about not depending too much on one player, game, or outcome. It's like how investors spread their money across different assets to lower risk.
  • Why diversify? Unpredictability is inherent in every DFS game. Injuries, weather, or a bad day can affect a player's performance. Diversification helps lessen the blow if a player doesn't perform well, boosting your overall lineup's success rate.
  • Risk vs. reward balancing. Diversification is all about balance. It lowers the risk of your entire lineup failing, but it also limits the chance of a huge win. The goal is to reduce risk without weakening your lineup's potential too much.
  • Adapting to changes. Diversification allows flexibility to adapt when game conditions change, like a last-minute player benching or even weather conditions at the stadium.

Of course, a single player could go bananas in a single game and put your fantasy points over the top, but we can't bank on that.

That scenario doesn't come around often enough to win consistently.

You may also find some instances where diversifying doesn't make sense. Maybe you're on a hot streak, and you're trying to take it as far as you can. Don't pass up a good thing just to try out a new DFS strategy.

How to Diversify Your Lineup Like a Boss!

So, you're ready to diversify and elevate your DFS game to the next level. We get it.

We've got a few tips to diversify your DFS experience, but not necessarily on a micro level, but more on a macro level. These tricks will help you grow your bankroll and stay in the game for the long haul.

Mixing Sports and Players

Don't limit yourself to one sport or a group of players. You could even expand beyond a single DFS site as well to get different types of games in.

Spread your investments across various sports and player types.

This approach hedges your bets and keeps the DFS experience fresh and exciting.

A word of caution with this approach, however. If you go beyond what you're familiar with, you will need to do a bit more research to get caught up in whichever sport you're playing. We'll get into research in just a moment.

Considering Matchups and Scenarios

Pay attention to matchups and scenarios that others might not see.

A player might be a star in one scenario but average in another. We tend to see this when it comes to weather or even sometimes the opponent. Take a look at Aaron Rodgers. He's a future Hall of Famer, but he could never get past the 49ers in the postseason.

When you pick up on these types of matchups, you can find gems where others don't. They're tough to find and require tons of research, but once you see them, you can't unsee them.

This variance can be used to your advantage in creating a diversified lineup.

Utilizing Data and Research

Leverage data and analytics to make informed decisions. We talk about this all the time, but there's no shortage of tools and metrics on the internet that you can use to put together the best, most diversified lineup.

Look at historical performances, player conditions, and even expert opinions to build a diverse yet strong lineup.

We're big fans of following various names on X (aka Twitter) to get the inside scoop on various players. We use that as a platform to kick off our research into specific players.

Ready to Diversify?

Diversification in DFS is not just a buzzword; it's a fundamental strategy for sustained success.

By spreading your investments across different players and sports, considering various scenarios, and using data to guide your decisions, you can create lineups that are both resilient and competitive.

After all, winning all the time is what it's all about. Any DFS newbie can get a win here or there, but you want consistency. Diversification can deliver that.

Keep in mind that the goal of diversification is to strike a balance between risk and reward. It's about making informed decisions that maximize your chances of success over the long term.

Matt Brown

Matt Brown

Head of DFS

Matt's deep-rooted enthusiasm for sports betting and daily fantasy sports infuses the EatWatchDraft team with valuable expertise in football, hockey, and baseball. His forward-thinking perspectives are grounded in a solid academic foundation, including a B.S. in Aeronautical Computer Science and an M.S. in Project Management. This combination of sports passion and technical knowledge fuels Matt's innovative input to the platform.