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 related to currency.
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 will be 50.
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 staking crypto 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 growth.
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 betting.
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.