betting
Money management - The key to successful betting being often underestimated
Following the „How to win on football betting“-article, this article gives an introduction to professional money management and advantages / disadvantages of different money management profiles and systems.
Introduction
First of all, there are certain facts which have to be taken into consideration while creating your money management system. Out of this facts, you will be able to create a system which should suite your needs as good as possible, as generally spoken, there is no certain system which will satisfy everybody's needs.
Every single person's betting style and philosophy will differ from a second person's view and therefore this guide is no definite plan, just an advice on how to set up your successful money management.
Different risk profiles and their advantages / disadvantages
First of all, you have to determine you prefer to have a low, medium or high risk profile. All these 3 profiles have certain advantages and disadvantages which are the following:
The low risk profile is set to act as the name indicates already to be less risky than the other two calculations. Choosing this system, the stake of a 10/10 bet should at highest be 1.5% of your initial bankroll. This would mean, 1/10 ends up in 0.15% of your bankroll.
Assuming you are flat staking using 8/10 per bet, you are staking 1.2% of your starting capital which enables you to have a total of 83 running bets at one time. This is quite a huge number and as it will be seldom the case you are having as that many bets running at the same time, while this low risk profile also scales down your risk of bankruptcy as you will have quite a lot of bets left to recover.
Advantages of low risk profile
- Having the possibility to have many bets running at the same time
- Decreasing the risk of heavy losses due to losing periods
- Option to stake lower winning probability bets due to smaller losses
Disadvantages
- Lower profits in case of winning runs
- Takes longer to double your bankroll
The second option when choosing a staking plan is the medium risk profile. As the name suggests, this version is kind of a mixture of both, low and high risk profiles.
When deciding to set up this staking plan, the basic numbers should look similar to the following:
A 10/10 bet should be around 2.5% of your initial bankroll, which is 0.25% for each unit staked and a flat stake (assuming 8/10) of 2% of your initial capital. By this 2%, you are able to have 50 running bets at one time which can be a realistic number depending on the number of tipsters you follow. More risky than the low risk profile, but at the same time still quite balanced and increases your profits comparing same results with this two staking plans.
Advantages of medium risk profile
- Increasing the profits when calculating on same results while still having quite good possibilities to have a high number of bets running at the same time
- Probably the most balanced system out of these 3 explained
- Quite good fitting when comparing the number of BettingExpert Member Service tipsters and bets
- Higher risk of getting bankrupt than low profile
- In special cases your whole bankroll might be invested
- Far bigger profit assuming similar results to other staking systems
- Increasing possibility of doubling your bankroll in a quite short period
- Huge profits in case of winning periods
- High risk of getting bankrupt
- You have to choose the bets / tipster you follow carefully
- Higher pressure after losing runs
Disadvantages
As the third and most risky staking system, there is the high risk profile. This system should be advised to more experienced players only as it increases the chances of bankruptcy while decreasing recovering possibilities.
In case you are following just a handful of tipsters or filter the bets you are staking quite detailed including winning chances and not-to-lose probabilities, this system might fit pretty well into your betting style.
The first determination is that a 10/10 bet should be around 3.5% and 4% of your bankroll. I would advise to choose 3.5% as this ends up in 0.35% per units and a flat stake (8/10) of 2.8%. The difference of 0.8% to medium risk staking seems little, but it's not. Staking an average of 2.8% of your bankroll, you have a total of 35 flat bets to be staked at the same time which is quite a low number if you are following several tipsters and taking all bets they advise.
The danger of this profile is that after 10 bets lost in a row, you lost already 28% of your initial bankroll and inexperienced punters might get very nervous after such a down.
How to choose one of the 3 systems
As mentioned in the explanations of the system right at the top, there are certain facts about choosing one of the systems as the best fitting to your needs.
Generally spoken, following a bigger number of tipsters and staking all bets no matter how high winning percentages are, the low risk profile should be your choice. The benefits of having quite a comfortable number of bets to place and even losing periods won't end up in losing 30% of your bankroll.
Assuming you focus on a smaller number of tipsters (between 10 and 15 are good fitting numbers here), the medium risk profile will suit you best. You will be able to have probably all bets staked at same time the tipsters advise them, comfortable profit margins and still quite a big number of bets left after a losing period.
When selecting the guys to follow very carefully and filtering their bets to high winning percentage and high not-to-lose percentage, it's a possibility to choose the high risk profile. As already mentioned, I would only advise that to more experienced punters as the downtrends will be very strong while at the same time profits might increase as well. As a general rule for this staking system, I would not advise you to choose bets having a lower winning percentage of around 55% and at the same time not to follow more than a total of 8 guys, otherwise your staking capacity might not be enough.
Staking Plans affecting your profits and results
Having the possibility of choosing different staking plans, you also have the possibility to increase your profits and achieve as good as possible profits over long-term. To be able to choose the best suiting system to you, there is one fact which must be considered: higher yield isn't the most important factor when calculating with different results.
Example of different profits using different staking systems:
| Starting Bankroll: | 100 Points |
|---|---|
| Low flat stake | 1.2 |
| Med flat stake: | 2.0 |
| High flat stake | 2.0 |
Imaginary record
(asuming results of a subscription service in one month)
| Bets | Yield | Profit |
|---|---|---|
| 100 | 10% | ??? |
| Med flat stake: | 2.0 | ??? |
| High flat stake | 2.0 | ??? |
LOW:
100 × 1.2 × 0.1 = 12
MIDDLE:
100 × 2.0 × 0.1 = 20
HIGH:
100 × 2.8 × 0.1 = 28
As we are able to see, the high risk profile would have achieved the far best results. Of course this is logical, but the number of bets is very low and the yield quite generous.
Now imagine a second service offers you these results after one month:
| Bets | Yield | Profit |
|---|---|---|
| 250 | 5.5% | ??? |
LOW:
250 × 1.2 × 0.055 = 16.5
MIDDLE:
250 × 2.0 × 0.055 = 27.5
HIGH:
250 × 2.8 × 0.055 = 38.5
Again the high risk staking plan seems to create most profit, but now look at these numbers:
- Total bets per month: 250
- Average bets per week: 62.5
- Average bets per day: 8.9
Assuming this service adds as that many bets daily as 9. This would mean you aren't able to place any more bets in case the service adds just 4 days in front of events (such as weekend) and you won't be able to achieve the real results. Therefore for a high number of bets, the high risk profile isn't advisable.
In addition, we are able to see that the real profit isn't necessarily connected to the yield. Although staking a higher percentage of your bankroll using the upper service achieving 10% yield, you achieve almost similar results to the second service staking the medium plan.
This example should give you a first impression on how to determine which staking system suits you best. As a general rule, it is fine to remember: the higher the number of the picks, the lower my risk management should be.
Final Word
This article should open you a first introduction to the world of money management. Many factors should decide which system you are going to use, and I recommend to custom one of the models up to your needs.
Generally speaking there is no strict rule which system will create the biggest profits or losses. All the mentioned circumstances about your betting style and results should help you to find a valuable system up to your needs.
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