So you have developed a winning system, a profitable model or maybe you can just read form and grind out impressive returns. The work is done, you can start betting and watch the profit roll in, except things don’t quite work out as you would like. Should you have bet levels stakes instead of perhaps being greedy and operating a percentage of bank stake in the hope that the latter would accelerate growth and put when to increase stakes on auto pilot.
Maybe you should just give it a bit longer after all the results show levels stakes are doing OK and maybe your percentage bank betting is just taking a bit longer to crank up.
Joseph Buchdahl does an excellent job of examining the pro’s and con’s of levels takes v proportional bank staking in the following article.
Well not much to add one might think, but it occurred to me that there are other considerations to well, take into consideration. How does the real world of getting on impact various forms of staking. My main thoughts on this revolve around knowing your betting pattern, especially in terms of odds. It is easy to think that proportional betting is the way to go on paper but in reality that theoretical £500 stake at 80/1 is not going to happen even betting just before the off on Betfair. Even levels stakes will run into getting on problems when you decide perhaps at the end of a year to increase stakes.
This is where another form of staking should be considered namely variable stakes. Variable stakes involve putting a proportional amount on to win a fixed return. If you are backing a 10/1 shot and your fixed return is £1000, you would invest £100. If it happened to be even money you would invest £1000. The advantage of this staking is that you are putting more on the odds which will allow you to put more on. Another argument is that if your method is not making reasonable returns to variable stakes it is much more likely to be a mirage in terms of long term profitability.
Variable staking does not quite give you the same roller coaster ride as levels stakes although it clearly can inflict pain when an even money shot loses and a 20/1 shot go’s in but the long term profit of variable staking is perhaps more realistic due to the allowed stakes imposed by the odds you are taking.
The bottom line is know your betting method/past results, take a look at variable staking and see how it stacks up and remember always bet with the exchanges because that is where you will end up anyway.