As promised yesterday I'm taking a detailed look at some of the Staking Plans people have invented over the years to try and exercise correct bankroll management. Some are obviously better than others and different plans suit different types of punters. So basically it means you need to try out different systems to find the one that fits your betting style and personality the best....
We'll start with probably the most debated system, or staking plan, in gambling history...The Martingale
More famous as a Roulette system the Martingale staking plan is theoretically and even mathematically infallible. But unfortunately, and many people have found this out the hard way, this doesn't mean that it works. You can easily adapt the staking plan to horse-racing or any other gambling medium where your chances of success are even money i.e. flipping a coin and it works like this. (We'll use roulette for this example as it's easier to explain)
Very simply you just double your bet each time you lose.
You go into a casino and place your first bet on Red.
£1 at evens...Up comes Black, you lose. You are now -£1
Next bet, £2 on Red at evens.
If you win you get £4 back and win £1 (you have staked £3 up to this point). Your next bet is back to the start, £1, and you repeat the process.
If you lose you simply stake £4 on Red and carry on doubling your stake until Black comes up.
Simples! Amazing I hear you cry! Foolproof!
Well, before you go rushing down to the local casino armed with a fistful of cash, consider this.
If Black comes up 10 times in a row (and I've seen this many times in a casino) you will be staking £1024 on your next bet just to win £1 (you have staked £1023 up to this point). With casino's insisting on a £5 minimum bet for Red/Black selections your next stake will actually be £5120 to win £5 profit after 10 losses. Oh dear!
For £1 bets if Black were to come up 15 times in a row you are now having to stake over £30,000 just to win £1. There aren't too many casino I know of that allow you that kind of wager.
All of a sudden it doesn't look quite so good and that is where this staking system ultimately fails. You will need unlimited funds to counter any variance or downswing and have nerves of steel to be placing those kind of bets just to win £1 or £5. We've all backed 10 losers or more on the trot and not many of us have the kind of resources available to withstand that kind of losing run.
Time to look elsewhere.Benefits:
Very easy to useDownfalls:
A long losing run will have you rushing to sign up for a Swiss suicide clinicRequirements:
Nerves of steel, Bill Gate's bank balanceProbable Outcome of using this plan
: BankruptcyType of person this system suits (suited):
If you've ever been tempted by those adverts for the 'Unbeatable Roulette System' costing £1000's then don't bother. More often than not, all you'll get is the above padded out to 20 pages. Please make your cheques payable to Gavin Priestley ;-)
Probably the easiest of all staking plans but one that requires discipline, patience and excellent money management.
Quite simply you divide your bank by a number ( I would suggest 200 but definitely not less than 100) to give the amount of bets you can place before your money runs out.
So if you have a betting bank of £2000 this would mean every bet you place, regardless of odds, will be to the same stake of £10 (£2000 / 200). £200 would involve stakes of £1, £1000 stakes of £5 etc...You now have the capability to go 200 losers without going bust but obviously your bank will grow very slowly. If you are a disciplined bettor then this is the perfect system for you or it's a great way for a beginner to learn essential money management.Benefits:
Very simple to use. Built to take long losing runs.Downfalls:
Your bank won't grow very quickly. It's a bit boring and you may be tempted to increase your stakes.Requirements:
Discipline.Probable Outcome of using this system: ZZZzzzz
Boredom.Type of person this system suits:
Bank managers. Alistair Darling
-----------% Bank Stakes (or the Plateau Philosophy)
Similar to the level stakes but much more fun. Again you take your betting bank but work out your stake by applying a % to this amount. Say you have a bank of £2000 and decide to stake 5% of your bank each time you have a bet then your first bet will be £100...
If it loses then your bank is now £1900 and your next bet is £95 (5% of £1900)
If it wins at 2/1 then you have £2200 in the bank and your next bet is thus £110
And that basically is it, a very affective and simple to use plan.
Though it is impossible for the bank balance to reach absolute zero don't be fooled by these claims as it is possible to be attempting to place bets of a very small nature should you experience a long sequence of losers. Like a lot of these staking plans there are plenty of variations to this one including
increasing and decreasing the % as your bank goes up and down.Benefits:
Another easy to use system that exploits winning runs.Downfalls:
A long losing run can be disheartening as the size of your bets rapidly decrease. It can take some to regain your original balance after one of these losing runsRequirements:
Patience, decent starting bank, calculator if you're not good with %'sProbable Outcome of using this plan:
A good run for your money. Possibility of large betting bank balance.Type of person this system suits (suited):
Gambling betting pro's
. Dave Nevison
----------Square Root Staking System
Very similar to the Level Stakes but with a slight twist. As I said above, the trouble with betting in level stakes is that your bank grows very slowly and doesn't exploit winning runs should you be lucky enough to experience one. The Square Root Staking Plan works the same as the level stakes method in that you start off betting the same £10, £5 or whatever but then waits for your bank to go into profit and increases your stake by using some of this excess money.
It does this by adding to your usual stake the square-root of your profit. This gives you a new figure for your next wager.
Example: You have a bank of £2000 and are betting level stakes of £10.
Your first bet loses -£10. Your bank is now £1990
Another £10 loser and your bank is now £1980
Your 3rd bet wins at 5/1 and at your usual stakes wins you £50. New balance £2030
bet is now £10 + £5.48 (squareroot
of your £30 profit) = £15.48
If it loses you now have a bank balance of £2014.52 and your next stake is £13.81 (£10 + £3.81 the squareroot
Any time your bank dips below £2000 your stake reverts to £10.
One of the better staking systems that combines excellent bank management with the ability to maximise any good runs by increasing your stakes.Benefits:
Maximises your winning runsDownfalls:
Your bank has to be in profit for the benefits of this staking plan to come into affectRequirements:
A calculator unless you can work out the squareroot
of 30.58 in your headProbable outcome of using this system:
A long and profitable betting careerType of person this system suits:
Disciplined betting pro's
. Patrick Veitch
A staking plan that is based on the fact that when you lose, someone else has won i.e. The Bookie. You start off with your bookies bank, say £100, and decide to stake 10% of this bank for your first bet, £10. If it loses, this means the bookie wins and his bank now becomes £110. Your next bet is 10% of this bank or £11. Another loser and the bookie is now £21 up with a bank of £121.
10% of this is £12.10 and is your next bet. It wins at 3/1 and you return £36.30. The Bookie Bank is now £84.70 and you have beaten the bookie this time and take your profit and run.
You reset the Bookie Bank to £100 and start again.
Sounds great but obviously you don't need me to tell you that as the losers pile up your bet size becomes greater and greater as you try to recoup your losses.Benefits:
Simple to work out.Downfalls:
Even simpler to lose your money.Requirements:
The need to get one over on your bookie.Probable Outcome of using this plan:
You give up and try another staking systemType of person this system suits:
A slight variance on the Martingale, the Fibonacci Staking Plan uses the Italian mathematician's number sequence pattern to work out your stake. For those of you who fell asleep during maths the Fibonacci sequence adds the previous number to the present number to give the next number in the chain. i.e. 1
(1+0) - 2
(1+1) - 3
(2+1) - 5
(3+2) - 8
So your first bet will be £1, £10, £100 (x1) or whatever decide your stake to be
Your next is £1, £10, £100 (x1)
Then £2, £20, £200 (x2).....£3, £30, £300 (x3)...£5, £50, £500 (x5) and so on.
If you strictly apply the Fibonacci series any win will cover the last 2 losses you had so when you get your winner you should ideally drop back 2 steps and continue. But this is only true if every bet is placed at evens and so there have been plenty of variations of the Fibonacci staking plan.
Some reset back to the start when a winner is achieved
, some set a limit to how far up the chain you get before giving up and starting again and some mad fools just carry on going!
It's all about personal choice and how far you're willing (or your bank allows you) to go to get your money back.Benefits:
Adaptable and capable of generating huge wins.Downfalls:
A long losing run and you won't be bothering with a Swiss suicide clinic you'll be heading straight for Beachy
Balls of steel, maths book, Saudi family bank balanceProbable Outcome of using this plan:
If you use the Staking Plan in it's purest form, it's not a probable
bankruptcy order it's a guaranteed one.Type of person this system suits (suited):
Tomorrow I will don my professors
mortar board, put on my cape and get the chalk out to take a look at the more mathematically challenging staking plans including by popular demand; the Kelly Plan, the famous Labouchere
and Reverse Labouchere
systems and the daddy of them all The Retirement Plan. Don't forget to bring your thinking caps, a calculator and remember, pay attention at the back!