| Most gambling systems fail to produce
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| | Position sizing systems that work whether
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| positive returns on investment in the
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| | for gambling, trading or investing are
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| long term, this is mainly down to human
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| | based around increasing your position
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| psychology and no real strategy. In this
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| | size when you are winning and making
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| article I will discuss position sizing
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| | money, and decreasing your position size
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| and anti-martingale strategies that will
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| | when you are losing.
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| assist and help you make a long term
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| | Position sizing - Percent risk model
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| profit.
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| | When you enter into a bet you divide you
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| It doesn't matter if you are gambling in
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| | gambling pot by a % factor, this is then
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| horse racing, investing in stocks or day
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| | your stake at which you back a horse, If
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| trading forex you will need to manage
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| | you are laying a horse this is the
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| your money pot with a position sizing
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| | maximum you can lose so you need to
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| strategy. If you apply this correctly and
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| | further divide by the laying odds.
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| your desired punts are coming in your
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| | Dependant on your appetite for risk and
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| money will grow. If you have no position
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| | the amount you want to win. You will
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| sizing then you are doomed to failure.
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| | first need to decide a percentage risk, I
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| What is position sizing?
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| | recommend anywhere from 0.25% to 1.5%,
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| Position sizing in its purest form can be
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| | this may seem quite low, but it ensures
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| divided into two areas, martingale or
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| | long term survival
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| anti-martingale, Most casino gamblers
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| | Example for backing a horse:
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| will probably have tried to use a
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| | I have a gambling pot of $3000 I have
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| martingale strategy without even
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| | determined that for every bet I take I
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| realizing it. Martingale strategy
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| | will only risk 1.25% of my money pot
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| increases your bet size if you are
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| | So my first bet will be 3000/100 x 1.25 =
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| losing, anti-martingale is the opposite
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| | $37.50
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| and you increase your bet size when you
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| | Luckily my first bet came in and I made
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| are winning. One works the other is a
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| | $150 profit, so my second bet would now
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| total disaster.. guess which one?
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| | be 3150/100 x 1.25 = $39.4
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| Martingale example:
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| | Simple, all you need do is divide you pot
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| Any game of chance will have losing
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| | by 1.25% for each bet
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| streaks!
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| | Example for laying a horse:
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| Joe punter places a $1 bet at 2.0 decimal
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| | I have a gambling pot of $3000 I have
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| odds to win, on the horse windjammer at
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| | determined that every bet I take I will
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| Lingfield it loses he then doubles up and
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| | only risk 1.25% of my money pot
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| places a $2 bet on the horse tabadul,
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| | So my first bet I will risk 3000/100 x
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| this also loses. Joe continues his
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| | 1.25 = $37.50
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| unlucky streak, doubling up as he goes
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| | My lay bet odds are 9.0 decimal (8/1) so
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| on. His losing streak is now ten horses,
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| | my betting stake will be $4.69 (37.5/8)
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| he has to place a $2000 bet to just win
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| | giving me a bet liability of $37.5 if my
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| his original $1, that's right he has to
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| | bet is unsuccessful
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| risk $2000 to make a dollar.
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| | My second bet will now be 3004.69/100 x
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| To make matters worse Joe is running out
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| | 1.25 = $37.56 etc
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| of time as the horse racing track is
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| | Benefits of a percentage risk model
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| going to close and also the horse racing
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| | Allows for small and large betting
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| tracks betting maximum limit is nearly
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| | accounts to grow steadily it also
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| hit!
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| | equalizes performance by the actual risk.
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| See the problems, as a result Martingale
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| | Finally the percentage risk model is
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| strategies in the long term do not work
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| | recommended as the best possible position
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| Anti-Martingale strategies do work
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| | sizing model for long term trend
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| however, they call for a larger risk to
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| | followers. It gives all bets equal risk
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| be taken when you are on a winning
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| | and gives a steady growth to your betting
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| streak!
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| | pot.
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