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Category Archives: Money

Money Management is a key skill of the serious bettor and a topic that we cover regularly

Horse Racing Staking Plans

I read an interesting article recently about why horse racing staking plans don’t help when backing horses.

Basically the premise was that if you are backing then you are betting more losers than winners and if you have any type of increasing stakes plan then you will be increasing stakes on losers also and so you will lose more. Or at least your return on investment will go down.

But that got me thinking, because if we are betting odds on shots then we will have more winners than losers, so that means if we increase stakes then we will be staking more on winners than losers. Because there are more of them.

This reminded me of the Odds On Trainer and Odds On Jockey systems we created back in May of this year.

Both of these systems are in profit, but at Starting Prices it is a very modest profit.

Here are the numbers since we created the system

Odds On Trainers = 3.43 points from 108 bets with a 60.19% strike rate
Odds On Jockeys = 3.35 points from 85 bets with a 63.53% strike rate

To be honest I tend to agree with the article and don’t like any form of increasing stakes staking plan, but I think a simple percent of bank plan would go well with these strike rates.

If we revisit my article from earlier in the month about longest losing runs we can calculate that we can expect a longest losing run of about 9 with a 60% strike rate from 100 bets.

So I think a 5% of bank staking plan would work well as it allows for 20 losers in a row.

I applied this plan to the Odds On Trainers system and it made a profit of £7.13 from a £100 bank :-( level £5 stakes would have made £17.15.

So I did the same with the Odds On Jockeys system and got similar results, using 5% of the bank made a profit of £10.14, but level £5 stakes produced £16.75.

So what’s the point here, I think it’s just that beware of anything promising riches from a system or tips that use a particular staking plan.

I’m sure I could come up with a staking plan that would make these selections more profitable, but it would probably only work on that particular sequence.

Feel free to discuss this in the comments and I’ll investigate any interesting points raised when I get back from my hols.

Today’s Selection courtesy of http://bookiesenemyno1.com

7.50 Wolverhampton Old Fashion 11/4

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Longest Losing Run

Smart SiggerI’ve just been catching up with my reading, with this months Smart Sigger magazine.

This months issue includes Ebor Handicap Trends, a piece on the wisdom of crowds that looks at why starting prices reflect the true chance of a horse, a continuation of their implementation of a Bayes Theorem method. A system for betting debutantes in handicaps and an interesting piece about why you shouldnt always use past results as an indication of future performance.

But the piece I want to talk about today is a discussion of whether you are a gambler or an investor, which provided a reminder of the formula that you can use to calculate your longest expected losing run.

I think we have published this formula before but it’s always worthwhile to revisit important fundamentals.

The gist of the article was that if you dont stake your bets consistently with your longest expected losing run then you are a gambler not an investor.

The formula for working out the longest expected losing run for a given strike rate is

LOG(Number of selections)/-LOG(1-Strike Rate)

If, like me you no longer have your log tables to hand, then you will need to use Excel or something similar to make the calculation.

By way of an example lets assume that we expect to make 400 bets this season and that the methods we use have a strike rate of 20%.

The 20% has to be converted to a decimal number, so we divide by 100 to give 0.20.

So the calculation is

LOG(400)/-LOG(1-0.20) = 26.85

So with a 20% strike rate over 400 bets we can expect a losing run of between 26 and 27.

Eddie Lloyd who wrote the piece goes on to state that if you intend to be an investor and not a gambler you had better have a bank and a stake size that can cope with the losing runs you can expect.

You can get your first issue of Smart Sigger for free – Click Here

Today’s Selection

Lingfield 6.35 O Gorman – eachway bet – 13/2 Bet Victor

 

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