 |
 |
 |
 |
 |
 |
 |
 |
 |
|
Staking Plans
Firstly, you will need to create a betting bank. It should be large enough to absorb losses but not so large that its complete loss will cause financial hardship. We would suggest that a betting bank of £1,000 is more than adequate for our purposes. You should now decide how much of your betting bank you are willing to expose on a single bet. It should be large enough such that a reasonable amount is won on a winning bet but not so large that losing a bet will have a disastrous effect on the bank. We would therefore suggest that 5% of the betting bank is a reasonable amount. This means that the betting bank will only become completely exhausted if we were to have 20 losing bets in succession! Rather
than betting a random amount on each selection, we suggest that
a fixed amount is wagered on each selection. Essentially, there
are two options: Fix the stakes and vary the liability or fix the
liability and If an initial bank of £1,000 is created and 5% of the bank is allocated to each single bet, then the liability of each bet will be £50. This is referred to as our 'point' and 1 point = £50. Whenever we identify a selection, we will also advise how many points to allocate to each bet. The number of points allocated to each selection reflects our assessment of how likely it is that the selection will lose its race. The more likely it is that the selection will lose, the more points we will allocate to the selection. Conversely, the less likely it is that the selection will lose, the fewer points we will allocate to the selection. When we recommend that a stake of 1 point should be allocated to a selection, the liability on the selection will be set to £50. Likewise, if we recommend that a stake of 1.2 points is allocated to a selection, the liability on the selection will be set to 1.2 x £50 = £60. Both of these examples assume that we have a betting bank of £1,000. To calculate the stake, subtract 1.0 from the decimal lay odds of the selection and divide it into the monetary equivalent of the number of points to be wagered on the selection. For example, if 1.2 points are to be wagered on a selection whose lay odds are 7.0 and our bank stands at £1,000, the calculation would be as follows: 1.2 points equals 5% x 1.2 x £1,000. The result of this calculation is £60. This therefore becomes the liability on the bet. Since the decimal lay odds of the selection are 7.0, we subtract 1.0 and divide the result into £60. 7.0 minus 1.0 equals 6.0. £60 divided by 6.0 equals £10. Therefore, our stake would be £10. If a bet is won, a profit will be made and the size of the bank will be increased. Therefore, the value of our 'point' increases. For example, if we begin with a bank of £1,000 and we win £10, our bank becomes £1,010 and our 1 point now becomes £1010 x 5% = £50.50. The liability on our next bet therefore becomes 5% of £1,010 or £50.50. In this way, the potential profit (and liability) increases in line with the increase in our betting bank. If a bet is lost, a loss will be incurred and the size of the bank will be reduced. However, in this case, the size of our bet should not be decreased. The reason for this is that if we reduce our stake, we will recoup our losses at a lesser rate than that at which they were incurred. As a result, our bank will, over time, slowly reduce to zero. To prevent this happening, a 'ratchet' mechanism is employed. The 'ratchet' mechanism operates in the following manner: The stakes are set, initially, to 5% of the betting bank. When the size of the betting bank increases, so do the stakes, in line with the increase in the bank. Following a loss, the size of the stakes are maintained until the size of the bank exceeds its previous highest level. At this point, the stakes should be increased again. By way of an explanation, let us consider this example: Bet
1. Bet
2. Bet
3. Bet
4. Bet
5. Bet
6. Bet
7. Bet
8. This
staking plan has been selected specifically for use with my selection
system. However, should you not wish to use this particular staking
plan, you will find details of other staking plans here: Kindest regards Paul (Psycho) |