Hello…

Horse Racing Betting System ResultsMy name is Keith Eckstein and I’m the creator of Place Profits.

Now, you might know me better as the creator of FocusRatings.com and AdvanceRatings.com – two capable ratings agencies which produce daily UK and Irish ratings but, in totally different ways.

Now, I am a firm believer that….

Every horse racing system or strategy that you use need to have its own staking plan.

There is no one staking plan that rules all.

As the famous (or, should that be infamous) Maria Santonix said in her first ever forum post in 2005 (which you can see… here on archive.org)…

This isn’t the time or place to get involved in a big discussion about whether the selections or the money management are more important – it suffices to say that without both aspects being good, sensible, reliable and proven, it’s not possible to make steady profits…

Now, whether I agree or disagree with Maria (whom I think was actually a pseudonym for Adrian Massey) is besides the point.

And, while I’m on the matter, it seems that Adrian Massey is back after closing down in 2011. His website is here… http://adrianmassey.no-ip.org/web1/index.php

What matters is that the staking plan has to…

1), Have a bank that you can afford to lose.

2). Is perfectly aligned to the risk associated with the bet,

3). Works for you actual needs.

That is why Maria’s Staking Plan is actually 3 staking plans; each one specific to the anticipated risk of the bet.

The Bank

Now, as I live in France, I only bet on French horse racing (it is illegal for me to use British bookmakers or Betfair.)

And I have an actual, physical bank. Actually it’s a wooden box that sits on my mantelpiece (a few years ago, one of my IT support business clients gave me a couple of bottles of decent wine as a thank you; I drank the wine and kept the presentation box that the wine came in.)

Now, I bet in a very weird and difficult to explain fashion; I bet the race rather than betting the horse. In other words, I place between 12 and 14 bets of different types (and, at different stakes) on a single race. I only do 3 or 4 races a week and those races have to be spot on for me to consider them.

Now, this doesn’t make me a lot of money but I very rarely have a losing day and, when that happens, I only lose a little bit.

So, in my bank (the wooden box on the mantelpiece) I have about 500 euros but only 300 euros is the bank; the rest is profits that I can’t spend. I bet in order to treat myself to an occasional meal out and the restaurants are closed over here in France.

My bets generally come to about 90 euros in total (to be honest, I would be scared shirtless to consider betting any more than that) so I’m sort of betting to a 3 point bank.

Now, it is vital that I can afford to lose my entire bank; either by a run of bad luck (it would be very difficult for me to lose my bank, the way I bet) or, if Billy the Burglar decided to pay me a visit (and I’ve sorted invited him round, haven’t I, by letting on that my batting bank, plus recent profits) is all in cash and in a box on my mantelpiece?

But, the important thing is, I am betting to the right percentage of my bank in terms of risk and reward. And, more importantly, I can afford to lose my entire bank.

Whilst it would be stupid of me to bet to a higher percentage of my bank (not that I could as I would probably end up wetting myself out of fear), it would be equally stupid to bet to lower stakes as I would be missing out on potential reward. As it happens, in order to get my 12 to 14 bets on at the required differential stakes, I can’t do that multiple bet without it costing about 90 euros as we have to bet in 1.50 euro multiples here in France.

By the way, if you are interested in horse racing in France you might want to take a peek at a post that I published on Focus Ratings – Why a PMU ain’t your average bookies…

The Risk/Reward Ratio

Now, you can use a site like The Staking Machine to work out what percentage of your bank (that amount of money that you can afford to lose) you should be using for your stakes.

However, what really works for me, is going through a spreadsheet of at least a couple of years worth real data, line by line, to see what would have happened if I had bet to the proposed stakes.

I have done that for 5 years data for PlaceProfits.com

Why Do You Bet?

Obviously, I can only speak for myself but…

I take out my profits and spend them on the occasional meal out (or good bottle of wine.)

I am not too interested in increasing my bank (and, thus, the amount I could stake) as I would have to take a couple of very strong Brave Pills to get me to go outside of my comfort zone and bet more than 90 to 100 euros on a race.

However, I understand that many of you want to do both; take out some of your profits but, grow your bank at the same time.

This is why I have come up with the New Annuity Plan.

The New Annuity Plan

Click on the image to see it full size.

I have created a spreadsheet of the New Annuity Plan; it may be found here… New-Annuity-Plan.xlsx

Now, it’s only the first tab that you need to look at.

On the left hand side (where the top bar is coloured green) I show what happens if you start with a £100 bank, take out all of your profit at the end of each month (apart from those 4 months over the last 5 years) thus resetting your bank to £100 at the end of every month.

By doing this you end up with your bank intact at £100 and, along the way you would have taken out about £4000 in profits.

If you scan down the spreadsheet, you will see that, at no time does your bank even get threatened.

On the right hand side (where the top bar is coloured orange) I show what happens if you observe the following rules…

1). You always bet to 10% of the value of your bank at the start of each month.

2). At the end of each month, you calculate your profit and take out 80% of your profit on the month. If there is a losing month (and I have to be honest, we’ve had 4 losing months from the 60 months worth of data – not taking into account the 3 months we lost last year due to no racing) we just don’t do a take out.

You then just observe Rule 1 and adjust your stake to 10% of your residual bank.

3). At the end of the year, after your take out of 80% of December’s monthly profit, you take out 80% of the remaining profit on the year (as a sort of late Christmas present.)

By doing this you only have to work out your new stakes once a month you get an income from the 80% of the monthly profits that you take out and…

Once a year you get a larger pay out. In fact, there’s nothing to stop you doing the annual take out at the end of November every year in order to finance Christmas.

Using the same selections over the same 5 years of data…

We start with a £100 bank.

After 5 years our bank has increased to £651.24

Along the way we have taken out (both the monthly and annual take outs combined) £10,940.93

Conclusion

I hope that this has explained my ideas of matching your staking plan to your actual strategy/system profile so that you neither under bet or over bet but, more importantly…

Getting what you want from your system; whether it be taking out money as income or increasing your bank or, as in the New Annuity Plan, doing both at the same time.

Obviously, the New Annuity Plan is based upon the new system that underlies PlaceProfits.com but you could adjust to any of the systems that you run.

My kindest regards

Horse Racing Betting System Results