Introduction
A Staking Plan can increase the
profitability of a Sports Betting Investor, as well as providing
other benefits, for example, in terms of applying security and
discipline to the investor's activities. A correctly selected
Staking Plan can enhance gains, protect in times of loss, and
substantially assist in the success of a venture.
Staking Plan methodology can be adapted to any form of betting or
investment, for example, stock market investments, casino table
games, etc. where the advantages of staking can be transferred
effectively, provided the correct type of plan is applied. A
Staking Plan may increase profitability by 10 to 30 %.
Normal betting, as carried out by the majority of people, involves
either placing a randomly selected bet amount on any event,
according to 'gut feel'. There are no criteria applied to the
amount of the bet. If the same bet amount is used for every event,
this is called 'flat betting' or 'level stakes', where each bet has
exactly the same weighting. There is no adjustment of the bet
amount according to the odds being offered, the effect of previous
results, the amount available for staking or the effectiveness of
the system that is being used.
Definition of a Staking Plan
A Staking Plan is a pre-determined methodology of money management
that, when applied to the process of betting or investing, promotes
steady overall growth through maximised returns. It ensures that
the process will continue by ensuring that funds do not run out,
due to the application of protection measures against losses. This
is done by assuming that future results will be similar or related
to past events, though this fact can never be guaranteed.
The first basis of a Staking Plan is that a separate betting fund
or 'bank' is used from which to stake and to which the winnings are
added. This means that bets are never placed randomly without being
accounted for to the bank amount, and there is a certain amount of
limitation of liability in managing the money in this way, rather
than betting out of everyday funds. The concept of having a bank
and protecting it is fundamental to Staking Plans and applies the
first stage of protection.
The Staking Plan is applied to a system of selection, which may use
any criteria to select the next bet. It is important to note that a
Staking Plan will never select a next bet for the user; it will
merely indicate the bet amount.
As a priority, the Betting System used must be assessed in terms of
its relative success and also to estimate the worst-case scenario
for a losing sequence, ie. the maximum number of consecutive or
near-consecutive losses. This eventuality must be allowed for in
selecting the bank start amount and in the type of staking plan used.
How to rate a Betting System
A Betting System is rated on 'flat betting' or at 'level stakes',
ie. its performance is tested when a consistent bet is placed every
time and this allows comparison of systems. Furthermore, points can
be applied when assessing a system's success. Points gained by a
Betting System are then a factor of the bet amount and the amount
of funds held, and can provide a common level for rating, not
An example of the application of points to a system might be taking
1 point as 2 % of a bank. With the bank amount of 2 500, 1 point
Note: Staking Plan calculations must allow for commission amounts
which may be payable on wins if an exchange is used for betting.
The most common Betting System rating is its Strike Rate. This is a
measure of the relative success of the system, ie. the percentage
of wins out of total bets. The higher the average odds, the lower
the strike rate can be. When multiplied by the average odds, a
Performance Ratio is obtained for a Betting System.
For a Staking Plan to work, a Betting System must be either
successful, ie. having an overall positive result, or marginal, ie.
it does not substantially gain or lose money, with the bank balance
remaining around zero. A Staking Plan cannot make a successful
Betting System out of an unsuccessful one, though some Staking
Plans will assist in making a marginal system profitable. This does
not mean that the use of a marginal system should be encouraged.
The more successful the Betting System, the better the Staking Plan
will be able to assist in protection of the bank and in magnifying
Benefits of using a Staking Plan
Use of a Staking Plan can prevent many of the common mistakes in
betting. A Staking Plan immediately gives discipline to staking. It
establishes a bank amount and imposes rules to every bet made. This
prevents betting due to emotional reactions, positive or negative.
It records every activity to provide a means of checking and
cross-referencing a system. Bets are limited to the amount
stipulated by the Staking Plan, which prevents wild or impulse
A Staking Plan is the key to winning by protecting the bank from
the risk that it is exposed to by betting, and encourages slow but
steady growth rather than a 'get rich quick' mentality.
Bookmakers want a bettor to chase losses with blind hope, often
counting on luck, and this is what will happen without the use of a
disciplined Staking Plan. The most dangerous time is often at the
end of the day when it is tempting to try to recover all the day's
losses in one action. A Staking Plan continues from day to day, so
there is no 'last race' and this will not happen.
A Staking Plan brings about slow growth through planning and
encourages serious betting and sustained profits. The rule of
"don't ever bet more than you can afford to lose" is ensured by the
Features of a Staking Plan
3) indicate the next bet amount
4) prevent level stakes or flat betting
5)reduce and limit exposure
6) assist in making profits from betting
7) maximise the benefits of wins, minimise the effect of losses
8) maintain the lowest exposure when recouping after a losing run
9) position the bettor to gain maximum benefit from a good win
10) act on the effect of each bet, rather than overall performance
11) turn a marginal system into a profitable system
12) magnify profits in a profitable system
13) minimise losses during a long losing run
14)allow the bank to grow slowly and safely
15) control staking to build profits over time
16) record the results of every bet
18) impose rules for money management
19) provide an exact bank balance at all times
20) enable the bettor to know their exact position
21) monitor and record each bet of a system
22) provides a full record of transactions for checking and
23) give control over betting and provide a plan to which to bet
24) help prevent betting blindly or on impulse
1) indicate what to bet on
2) turn a losing system into a profitable one
3) predict or guarantee profits
4) make a 'quick buck' , but promote a slow, safe growth process
A Staking Plan relates the next bet amount to some aspect of the
previous events, so a Staking Plan calculation might be related to
the current bank amount or the odds offered. Alternatively, it can
be calculated according to the relative success of previous bets or
geared to recover lost amounts. The best Staking Plans are a
combination of several of these methods.
A. Target Based or "Loss Recovery" Staking Plans
This type of Staking Plan involves setting an aim or target to be
achieved. Once it has been reached, a new target is set. This means
that bets are calculated towards the target amount over a period of
time and the Staking Plan is designed to reach this amount
regardless of results along the way. For a successful system this
can mean steady growth of the bank as targets are set over time and
Progressive staking plans follow this idea, but they must be used
with caution, for example doubling up after a losing bet can
quickly lead to large losses. Some 'Point Chasing' Staking Plans,
which use a target based/loss recovery system, include the
Martingale Staking Plan and the high risk Directors Staking Plan.
The danger with this type of system is that if bet amounts are
designed to recover losses, the target increases with every loss
and a long losing run may exhaust the bank.
B. Bank Based Staking Plans
These Staking Plans calculate the bet amount based on a percentage
of the bank available for staking, ie. they run proportionally to
bank amount. These are called Percentage or Bank Staking Plans and
involve variable staking, sometimes for example as a fixed % of the
bank. Examples include Rolling Bank and Square Root Staking Plans.
It must be noted that these methods do not take directly into
account the performance of the system they are applied to, only
indirectly, by means of the bank movements, though they are safer
methods to use as the bet amounts are regulated by the selected
These Staking Plans are directly related to wins and losses ie. to
the Strike Rate of the Betting System to which they are applied.
Examples include the Fibbonacci, Stepper/Master, Pocket and
Percentage Profit Staking Plans.
The application of direct feedback means that these methods are the
most responsive to the flow of events; however, this also means
that they may not allow maximum benefit from a winning streak.
There are many Staking Plans that combine variations of above
plans, for example the Kelly Criteria Staking Plan uses a formula
to calculate the next bet based on the strike rate and average odds
for the system and then applies a bank percentage to obtain the bet
amount. Winfactor Select Staking Plan uses a percentage of the bank
according to the success of the system in a similar way.
What to look for in a Staking Plan
A good Staking Plan must recoup successfully after long losing runs
whilst maintaining minimum exposure. Since every event presents a
new situation, it should calculate a new next bet amount according
to the revised bank position after each event.
When lay betting, it should be noted that a Laying Staking Plan
must ensure that the bet amount is indirectly proportional to the
odds value, ie. the higher the odds, the lower the bet value to a
fixed risk amount according to points. Many Laying Staking Plans do
not recalculate the bank amount after each event, losing profit
Good Staking Plan software should allow easy input of results and
give a quick, clear indication of the next bet amount. It may be
useful to see the exact calculations of how this amount is
obtained, but it is essential to be able to view information on the
exact status ie. current bank balance and performance indicators
for recent events. It must allow for the application of commissions
Ideally, the Plan software should include the facility to test
systems at flat betting. With an easy method of input of past
results, it should provide as an output the necessary relevant
parameters for system assessment and comparison, ie. the strike
rate, performance ratio, etc. as well as a summary of the total
amount that would have been bet and the return that would be
achieved. This enables full 'paper testing' of systems.
Every race is a different equation so a bet should never be placed
without knowing the outcome of the previous event and good Staking
Plan software should quickly calculate and display the next bet
Suggested Staking Plan Software incorporating the best methods
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