Incrementally increasing betting stakes in controllable small amounts when on a winning streak is an approach that has been around for a long time, although not used much previously. The main reason for that is because of the previously long-winded manual processing of the mathematics involved. But today we can get computers to do all that for us, so this method should now start to come into its own.
The Plateau Staking Plan has the almost distinctly unique advantage that it satisfies all the following essential criteria (which sets it apart and above all the other Staking Plans, with the possible exception of the Kelly Criterion):
(i) It caters equally well for the individual punting style/approach of both the cautious and the more adventurous punter.
(ii) It can ensure that, if you hit a prolonged losing streak, a reasonable amount of funds would remain available in the kitty to make a recovery.
(iii) You will be able to take advantage of a winning streak to enable greater gains to be made, without putting your original gains at too much risk.
(iv) It offers ease of use, because it can be reduced to a simple spreadsheet application, and for those more adventurous and adept at complicated interactive spreadsheet construction, it allows them to get very fancy with their “conditional” staking parameters.
(v) It can be structured to flag up precisely what the value of the next bet should be, based on your particular starting parameters and the outcome of the previous bets placed.
In essence, the Plateau Staking Plan works like this:
- You have to make a decision as to just how much of your Base Bank you are prepared to lay out percentage-wise on each round of bets; this is a crucial issue (as is the correct concept of a Base Bank). That then becomes the Initial Base Stake.
- Week by week you lay out your fixed weekly Initial Base Stake until your bank exceeds the starting amount by a pre-determined minimum amount (the trigger point), and then you increase the next stake by a pre-determined amount (I recommend no more than 20% of your winnings at each additional “plateau”, and preferably only 10%). Should your bank fall back to the trigger point, you simply revert to the original level set for the base stake.
- A fail-safe procedure needs to be built into the Plateau Staking Plan to avoid the problem of over-spend that might otherwise occur in the situation where the base stake exceeds 2.1/2% of the Base Bank and an over-long losing streak is evidenced. There must therefore be an inverse trigger that will come into play should your Base Bank start to suffer too much loss.
- On the other hand, if the happy situation of a long winning streak is experienced, it is possible to adopt a number of higher plateaus. At each higher plane you could increase the additional “level” you are prepared to stake. Be warned, however, that this can become very tricky to control if you start to hit extended losing streaks. On the other hand, the basic system I have outlined is quite straightforward to operate and, as I made reference to earlier, it can be done with the aid of a spreadsheet.
It is also possible to build in a variation whereby the stake is not calculated as a percentage referenced to the Base Bank but to the Current Bank. This has advantages when you are winning, but (i) it can also cause bigger losses if you hit a prolonged losing streak when you are up on your Base Bank and (ii) you will lose out on the amount you can win if you are down on your Base Bank. To overcome these problems, you can always choose to adopt minimum and maximum stake amounts, expressed as a percentage of your starting Base Bank.
The fundamental issues you have to deal with when deciding to adopt the Plateau Staking Plan are (i) deciding an appropriate mechanism for determining the “level” of the stake each week and then (ii) sticking to that decision (because sound money management is a critical discipline for ensuring your betting success).
Horse racing staking plans protecting your betting bank
Staking plans vary in their difficulty; from the exceedingly easy to the very exotic and sophisticated, and staking plan methodology can be modified to any form of betting or speculation, for example, horse racing, stock market investments, etc. Remember bookmakers ultimately want a bettor to chase losses with some blind hope, often depending on pure luck, and this is what will happen without the use of a disciplined staking plan. And please remember staking plans can also be risky as they can never turn a simply bad punter into a professional punter alone.
Betting
Betting exchanges are a captivating new development in risk markets which have turned traditional bookmaking and the betting industry on its head. Betting exchanges have a vast turnover and many billions of pounds are matched each month on these markets. Whether your betting on the exchanges consists of backing or lay betting there is always a staking plan that can be found that will suit you. Percentage (bank) staking, like level staking, standardizes the amount of the stake, but as a percentage of the size of the current betting bank at the time the bet is placed, rather than as a fixed number of points proportional to the initial bankroll. The first variable which you need to specify is simply your opening betting bank and this is just the sum of money you will put aside for your betting.
Bookmakers
Bookmakers are in the business to make money and they too punt as they adjust there betting odds. Remember bookmakers always have to bet at every race meeting, but the punter has the choice to bet or not to bet on any given race. Bookmakers and top level professional punters use little known formulas for this form of calculated betting, where pro’s make calculated risks over days, weeks or even months and bookmakers make counter bets to limit their exposure from incoming bets.
The simple fact of the matter is that Bookmakers always come out in front, although a minority of smart well-informed punters do make a regular profit and luck has nothing to do with it. Unfortunately punters many do not and this fact is probably the most significant weapon in the bookmaker’s arsenal.
Staking
Staking plans vary in their difficulty; from the exceedingly simple to the fantastically exotic and sophisticated.
Staking a set amount on each selection, depending on their chance in a race is an example of a simple plan. If you currently do not use a staking plan you could be losing money. When talking about staking plans, I am referring to plans that require you to change the size of your bet (up or down) based on the result of your previous bet.
Proper money management may mean different things to different people, but common elements include:
- The application of a bankroll of fixed size set aside for the purposes of betting, which if lost would not be detrimental to everyday living.
- The identification of a suitable staking plan.
- The maximization of returns and the reduction and control of bankruptcy risk to acceptable levels.
And level staking always forms the benchmark staking strategy against which all others should be compared for profitability and risk assessment.
Conclusion
Without a staking plan it is so easy to see one’s betting bank go under. We have seen many people go bust (because they thought that they didn’t need a staking plan. Remember without the correct staking plan you could be placing the incorrect stake onto the wrong horse and ultimately betting without a staking plan you will always be negating any good horse selection you make.