Staking is a method of calculating the appropriate amount of money to place on a bet/bets for consistent profit making as part of a betting strategy. For a sports bettor, it is crucial to have a staking method which works for them in the long run. Ideally, this is one that spares you from your bankroll getting too low during bad runs and maximises your profits during good winning streaks.
There are several different staking methods which are used in the betting world. We have chosen five of these and outlined them below. Hopefully, this can help you assess which of these staking methods suit your style of betting most, and also help you understand the importance of an effective staking method.
This method is exactly what it sounds like. You bet your entire bankroll whenever you bet. This has massive downsides in that if your bet loses, you lose your entire bankroll. However, this method may not necessarily be bad, if you are betting an amount which you are comfortable losing, and it may certainly be worth it if the odds are well on your side. Bettors who practice this method will likely withdraw their winnings if they do win a well-priced bet, and in a losing case, they would simply deposit more money into their betting account.
You need to have good self-control with this method as if you start a good winning streak, your confidence may grow along with your bankroll, and you may bet once too many and result in losing all of your bankroll.
This staking method originated in the 18th century and was a popular and simple method of staking. The method simply involves doubling up on a previously lost bet to cover the loss, essentially putting your bankroll back to where it started. While this might seem like an easy method to recover your bankroll, all martingale-type betting systems are set to fail in the long-term & aren’t an effective betting strategy. Imagine your initial bet of 100 dollar loses, your next bet has to now account for the lost wager, and you essentially end up betting more than you really should, just to get even on your bankroll.
This problem only compounds if your losing streak continues, and long-term bettors will surely know that losing streaks cannot be avoided. In saying this, you may have some success with this in the short-term, but it is best to avoid this staking method to avoid bad habits from forming.
With this method, you are just betting a set pre-determined value with each bet. There are no fluctuations to this value whether you are in a losing streak or a winning streak. While this method may spare your bankroll in losing streaks, you will not be able to maximise your winning returns shall you encounter a nice winning streak. For this method to be effective, you need to think about altering your wager amounts in accordance with your bankroll, which leads us to…
As mentioned in the previous point, this method takes into consideration your bankroll when setting a wager value. For instance, you may set 5% as your proportion to bet with. This means that if you start with a bankroll of $100, you wager $5. If you grow the bankroll to $500, your wager will now be $25, and so on. You can see from this brief example that your wagers get larger as your bankroll increases.
Conversely, your wagers will get lesser should your bankroll decrease. This has the benefit of maximising your profits when you are in a winning streak and minimising your losses during losing streaks. Practising this method is simple enough for everyone, and it is a good starting point for bettors wanting an effective betting strategy.
The Fibonacci staking method works by adding the two previous numbers in the Fibonacci Sequence to get the next stake, for instance, 1-2-3-5-8-13-21-34. With this method, your bets go up one step with each loss. With each win, you reduce your bets by 2 steps down.
With this method, every win pays for the two losses before it. As with the Martingale staking method, this staking method can be a painful experience if you get stuck in a losing streak, so this method is best avoided as well.
We have now covered a few staking methods & basic betting strategy. We advise staking methods based on the proportional staking methods. There are many other staking methods which will be covered in upcoming posts, so stay tuned.