Welcome to the FTS Mindset series, where we dive deeper into the world of betting and trading. This article will explore the critical aspects of staking and bankroll management, which are essential for long-term success in sports trading. By understanding the significance of these subjects, you can build a solid foundation and ride the ups and downs of the betting journey with confidence. So, let’s get started and ensure you are on the right path to sustainable and profitable betting.
Setting the Foundation:
Regarding staking, it’s important to remember that your success ultimately depends on your decisions. However, the monetary aspect of staking plays a significant role in shaping your overall discipline and emotions. Therefore, establishing a solid staking plan that aligns with your betting and trading activities is crucial. You should always begin by testing your systems and strategies using small-level stakes, betting, or trading with a consistent amount for each bet. This allows you to determine if the system produces a profit, the benchmark for any betting system and staking plan. A system that fails to make a profit with level stakes lacks a positive edge, suggesting it may not be sustainable in the long term.
Understanding Variance and Managing Risk:
Once you establish that your system is profitable to level stakes, you can decide on your approach to betting that strategy. Some may accept the ups and downs of variance and bet with fixed liability or fixed win amounts. Others may prefer to enter the market later, aiming for better odds and reducing the need for a high strike rate. It’s crucial to grasp that higher odds require a lower strike rate to achieve profitability. So, for example, if I back at odds of 1.3, every loser will wipe out 3 winners. However, if you back at odds of 2-2.5, then you’re getting better than 50% you will make money. This understanding helps you make informed decisions about your staking strategies and manage risk effectively.
Avoiding Risky Staking Systems:
In the world of staking, you may come across various strategies like Martingale, Fibonacci, Parlay, Kelly, and Square Root. While these strategies may seem enticing, it’s essential to remember that none will work if your system lacks a mathematical edge. Mindlessly following these strategies without a winning system can lead to significant losses. Before adopting any form of loss recovery strategy, it’s crucial to evaluate the worst-case scenarios and potential risks. The downfall of many punters is attributed to insufficient research and evaluation before committing to their selected strategy. This often leads to rapidly accumulating lost bets, resulting in either depleted funds or the dangerous cycle of chasing losses. Find out what you are comfortable staking. If laying bets at 7,8,9 odds is not for you, then don’t do it, as mentally, this will hold you back.
The Role of Bankroll Management:
At FTS Income, successful betting hinges on effective bankroll management. This is not merely about discipline but necessitates careful planning and allocating resources specifically for betting activities. Determining whether you’re betting at level stakes, outlining how you will achieve this, how each stake is calculated, and how you plan on growing your bank is key. Viewing your bankroll as a resource exclusively intended for betting and utilising it wisely is crucial. With a well-structured bankroll management strategy, you can safeguard your bankroll, reduce losses, and enhance long-term profitability.
Analysing Systems and Stakes:
Back-testing and forward-testing methods are essential in determining the correct staking size. Through back-testing your strategy, you can calculate your system edge, longest losing runs, biggest drawdowns, and EV, which aids you in planning for variance, inclusive of worst-case scenarios linked with a system. This data helps with decision-making regarding the betting bank and stake size. For instance, if I’m backing at even money, I’ll likely have 3x the biggest drawdown, so if 30 points is the biggest drawdown x 3 = 90, round up to 100 points. However, if I’m laying the draw at odds of 6-7, I know there could be 3 or 4 draws over a weekend, so I would be more vigilant and multiply the biggest drawdown by 4; now we have a 120-point bank, which I round up to 150 points. You want to make your bank BOMBPROOF. Another example of a staking strategy is backing or laying to a fixed win or liability amount. For example, if you are backing to win £50, backing at odds of 2.0, you would have to place a £50 bet; however, if the odds are higher at 3.0, you would only need to place a £25 bet. Lower odds betting does win more often. This method allows you to have more money on the bets which win more often and less on the bets which don’t win as often. This can help you mentally as you will know that your winning bets will be £50, and betting higher odds, your liability will be lower. It’s crucial to balance perceived edges and realistic assessments of potential risks.
Commitment and Discipline:
Building a successful staking and bankroll management strategy requires commitment and discipline. When you have mastered winning at small stakes by implementing all the above research, then you can build your betting bank. Many bettors give up too soon, often after experiencing bankroll losses. It’s crucial to commit to your plan and give it time to work. Losing runs and fluctuations are part of the game, and giving up prematurely can lead to missed opportunities. Stay focused, be patient, and commit to your strategy. By following your strategy and plan, you will build your bank, and one of the recommendations FTS income gives is that once your bank has increased by 50 %, then increase your stakes by 50%. For example, your initial bank is £1000, which is £10 per bet from the 100-point bank. When your bank has increased to £1500, which is 50%, then your stakes will increase to £15 per bet, and before you know it, your bank will be £5000 and keep growing that way. One thing we never suggest is to drop those stakes back down if you have a losing run.
Staking and bankroll management are integral parts of your betting and trading journey. By building a solid betting system, implementing effective staking strategies, and managing your bankroll wisely, you can achieve long-term. Remember to test your system with level stakes, understand variance, and avoid risky staking systems without a mathematical edge. Additionally, implementing a well-defined bankroll management strategy and exercising commitment and discipline are critical factors in your journey to sustainable and profitable betting. Stay patient, stay consistent, and stay in the game.