In the current economic climate there are
increasingly more reasons why betting, when conducted professionally,
can provide a very attractive alternative to traditional forms of
Basic investment philosophy
The setting up of a betting bank is crucial to
the success of your investment. That bank is your investment,
just as it would be if you had a portfolio of stocks and shares, and
my job is to manage it and make it grow. Your investment is geared to
the buying of racehorses' chances rather than gold or copper but it
works in the same way.
My operation is geared to progressive growth
rather than short-term jackpot-hunting. If, at the end of an
investment period, the growth of your investment is greater than you
could have achieved with a financial package from a high-street bank,
building society or financial services outlet, then the exercise will
have been worthwhile. Historical performance has shown that far
greater rewards than these traditional methods are possible on a
Trading in the chances of racehorses can produce
exciting results when handled correctly, as can be seen from the fact
that I managed a betting fund which provided a growth of 1,183% over a
seven year period.
The main emphasis of my risk management strategy
is to safeguard your investment. I will not allow it to be exposed to
any greater risk than is necessary. The potential effect of negative
sequences is carefully calculated and prepared for. With
this essential safeguard in place, staking is optimised to ensure the maximisation
Here are a few excerpts from the training manual of
one of the world's top fund management companies, clearly showing
how the principles of traditional investment strategy can be
successfully applied to betting:
"...if the risks are either too high or
too low, then bet sizes and/or bankroll can be adjusted to produce the
desired amount of risk."
and losses do not likely alternate with smooth regularity; they
appear, typically, as winning and losing streaks. When the entire
investor-manager team realizes this as natural, it is more likely to
stay the course during drawdowns, and also to stay appropriately
modest during winning streaks."
"...in actual practice, the most important
psychological consideration is ability to stick to the system. To
achieve this, it is important (1) to fully understand the system
rules, (2) to know how the system behaves and (3) to have clear and
supportive agreements between all parties that support sticking to the
correctly following the simple rules of my investment plan you will
give yourself every opportunity to reap the rewards it can provide.
are inevitable and can be both positive and negative. They happen whether
we like it or not and are unavoidable no matter what we do. It would be
nice if our winners could be spread evenly throughout the year but that
will never happen. That's why I advise preparing an investment bank before commencing, and, provided we hit a sufficient overall strike
rate for the price range we are targeting, our investment will flourish.
Detailed discussion on the topic of sequences can be found in my article
Go Broke (opens in new window).
on re-investment of profits
financial plan, re-investment of profits is an important factor
in securing optimum long-term performance. With this in mind, my
suggestions regarding future management of the initial
investment are as follows:
the initial bank doubles in value, take out the original capital
and start the investment plan again, with a new bank of the same
initial value as the first, but which is made up purely from
accrued profits. You need only do this once as all future
investment from this point will be funded by accrued profits.
achieved that first step, review your investment balance after every
100 bets and reset the value of the stake based on the closing
balance. By doing this progressively your stakes will increase
pro-rata to profit, thus securing optimum long-term benefits without
increasing the relative risk factor attached to your investment.
should take the time to read and absorb the following
articles in order to gain a better understanding of how the
investment plan operates (each link opens in new window):
Betting Advice and Strategy