Why You Need to keep to Level/Same Bet Staking to Protect your Bank in both Downswings and Upswings.
In theory, The Growth in Your Betting Bank or Bankroll or any investment bankroll, perhaps – is reasonably straightforward. As it grows, you can grow your betting with it.
We have Improved Many Members bankroll sizes as Punters using TipM8 have had 16 Months in Profit over the last 18 Month period with many members going from an average sized Bet of $10 & $20 Each Way to Now Betting $50 Each Way and the Unit Bet equates to 1 Unit $100.
If you’re using a 100-unit bankroll, for example, when the bank increases your unit size increases too. This leads to exponential growth as you bet more and more in dollar terms.
But what about when the betting bank decreases?
Everybody goes through downswings, flat spots and losing streaks, when their bank decreases. And the unit size should decrease with it.
Or should it?
There are two schools of thought here. The first it just that – your unit size is always a product of your bankroll, so it just moves up and down with it.
Or should it?
There are two schools of thought here. The first it just that – your unit size is always a product of your bankroll, so it just moves up and down with it.
The second is that you should never adjust your unit size downwards. The theory there is that you have the 100-unit bank to protect yourself, and that your betting activity will recover and kick back up… and if you’ve reduced your unit size during the downturn, it’s only going to take longer to win it all back.
Betting Bank: Up Or Down?
We asked pro punter Sam, who runs a highly successful Each Way Betting Plan and Sam touched on the topic above.
“Firstly, when it comes to adjusting the bank, it should absolutely be the same on every bet where possible,” said Sam.
“In theory, that’s the best approach for an exponential growth in the bank. Sometimes it’s impractical, so in that case at the end of each day – or whenever you can, essentially. Doing it every week, month, whatever, is not the best approach. It puts more of your bank at risk than you should.”
Betting Bank: Beware The Gambler’s Mistaken Belief-
But if I adjust the unit size down, doesn’t this mean that when the eventual upswing comes, it’s simply going to take longer to recover because I’m staking less (in dollar terms) than when I was winning?
“That’s what everyone thinks, but it’s not right,” says Sam.
“It’s the Gambler’s Mistaken Belief, which is optimism bias: ‘I had a bad run, so now I’m due for a good run’.
“Every bet is independent. Sure, assuming you have a profitable method, your results will go up eventually. But the question you need to ask is when is that going to happen? It could be next bet, could another 100-200 bets, or worse.
Fortunately For Members of TipM8 we have never really encountered long losing Runs as we have only not made profit in 2 months of a 18 month period which is quite astonishing but we have only ever gone without a Winner in 3 days and Betting Each Way means if the selections places we are still getting a return on the Investment (ROI) it is the % that differs only.
We still operate on 1 Unit but it is split from $100 to $50 Each Way.
“Losing runs often last a lot longer than we want – that’s optimism bias – and we don’t know when they will stop. By Betting Each Way using Same level Bet Staking we still roll over Important Betting funds in the Bank.
“You’re effectively betting more aggressively. Say you have a 100-unit, $10,000 bank, so you’re betting $100 per unit. Then a losing run happens, and you drop 20 units. You now have an $8000 bank, but if you keep the unit size the same you’re operating with an 80-unit bank.
“You lost $2000 because you keep the unit size the same ($100 per unit), when it would’ve been less had you reduced it as you were losing.
“On top of that, you’re effectively being more aggressive because you’re now using an 80-unit bank and betting a larger portion of your bank on each bet.
“It isn’t ‘doubling up’ but it’s the same sort of thing – betting more aggressively when you lose”
So while reducing your unit size may seem like unnecessarily risk-averse behaviour, it’s actually just a smart measure to ensure you don’t lose too much and worse, start to chase your losses.
This is why we Emphasize HOW IMPORTANT it is to BET same stakes on each selection and only on those selections as it protects the bank and as mentioned above Each way Betting will still return Money back into the bank roll so regardless of a run of outs we will however go back into a Winning run and we can quickly pick up the loss of Units.
The Month of February Highlighted this as the ROI was 115.63% which is extremely high but myself personally incurred a loss of 12% of my $10’000 bankroll from March which we have Now corrected that in the 3rd Day of April by just sticking to the Plan.
Never chases losses as it lacks discipline but usually neds up in you losing more than you had already lost- Each day we rest and back only those Selections.