## Double or triple your profit by adopting Percentage-of-Bank staking

No tipster site shows you this. It will transform your thinking and your profits. Einstein called it the 8th wonder of the world. So simple yet so effective.

**Percentage-of-Bank staking gives the effect of compound interest.**

Interest is another word for ROI and the table below shows how compound interest can double or treble your investment profits.

Simple interest is calculated on the bank you start with. It gives you the same amount of profit every period – in our example 200 (20% of 1000).

Compound interest is calculated on the bank as it grows. The interest is earning interest.

In the example in the table above, simple interest of 20% turns a bank of 1000 into 3,400 over 12 investment periods. Your 1000 units has made 2,400 units profit – a 240% Return on Capital (ROC).

Compound interest of 20% turns the same bank into 8,916. The 1000 units has made 7,916 units profit – a 792% ROC – that’s over **three times the amount of profit**!

**Tipster sites typically show a tipster’s statistics based on fixed stakes. Let’s look at why you need to think beyond that.**

## Level Fixed Stakes – Good

Level Stakes is a very safe, low-risk staking approach and can be used as a reference against other staking systems to analyse their performance.

The size of the stake can be determined however you wish. One method is to use what is known as points. Your stake would be 1 point, 2 points or more. For example, if your start bank was £100 you could split the bank into 100 points – each point is then worth £1 – and you could bet 1 point every bet.

Most, if not all tipster sites show profit figures and statistics based on a “points” or “units” system. This allows you, the punter, to determine how much each point is going to be worth and therefore how much you’re going to be betting. One follower of a tipster might be betting at £5 per point because they have a bigger betting bank to play with while another follower might only be betting at £1 per point.

If you started with a £100 betting bank and with £1 stakes you are risking 1% of your betting bank on each bet and leaving 99% unused.

It makes no financial sense to continue to bet £1 per bet when your betting bank has increased to say £1000. You would be risking only 0.1% of your bank with each bet and 99.9% (practically all) of your bank is unused and not working for you.

That’s where percentage-of-bank stakes is a way to increasing profits and limiting losses.

## Percentage of Bank Stakes – Better

Percentage of Bank Stakes is different.

Your stake is determined by how much of your bank you want to place on each bet.

For example, with a betting bank of £200 a “1% of bank” would mean your bets would start off at £2 stakes (1% of £200).

At some time later as your bank has increased (or decreased) you re-calculate a new “1% of bank”. For example, if your bank has increased to £400 your 1%-stakes have now become £4 per bet (1% of £400). If your bank has decreased to £100 your new stakes are reduced to £1 per bet (1% of £100).

With 1% of bank stakes, you will always be able to place 100 bets. With a 0.5% of bank stakes you will always be able to place 200 bets. What changes is the amount you stake on each bet.

You can do this stake recalculation as often as you like. You can recalculate it every day, every week or after 100 or 500 bets or every month.

A monthly recalculation appeals to many people.

You calculate 1% (or whatever percentage you’ve chosen) of your bank at the end of each month and that sets your stakes for the following month.

Using percentage-of-bank stakes has a real benefit for improving profits as you’ll see in the following real-world example.

## Real-world Example

As a real-world example to show the impact of percentage-of-bank staking I’m going to use a tipster called Basket Tipster – an extremely consistent tipster but with only a moderate ROI.

Basket Tipster has relatively low ROI of 9% but has been extremely consistent with 14 winning months out of 14 since Dec’18 using advised stakes – a 100% record.

His 57% Win Rate sets his Estimated Longest Losing Run (ELLR) at 8 – you should anticipate 8 losing bets in a row. This indicates a sensible betting bank of around 200 – 250 units. (3 x ELLR x stake = 3 x 8 x 10 = 240)

If you used 4% of bank for each bet, without doing any recalculation, you could have 16 losing bets in a row – two longest losing runs in a row – and still have 36% of your bank intact to continue.

### Actual Performance and Profits

At first glance, this Basket Tipster’s ROI might seem unattractive but he still managed to produce 478 units of profit to advised stakes (average 6.6 units) and 740 units of profit to level-stakes (10 units/bet).

Look however at the advantage of using a 4% of bank staking. Stakes and profit are identical in month one. But as each month goes by that 4% stake is get bigger and by month 14 the results could hardly be more different.

Instead of a bank of 990 units and profit of 740 units using fixed stakes you have a bank of 3,457 units and profit of 3,207. **That’s over 4 times more profit.**

It is the very high consistency of Basket Tipster that produces such impressive figures. With more losing months profits won’t be 4 times better but they will still be better.

FIXED STAKES | 4% OF BANK STAKES | ||||||

Month | Tips | Stakes | Profit | Bank | Stakes | Profit | Bank |

Jan-20 | 49 | 10 | -4.72 | 3,457 | |||

Dec-19 | 50 | 10 | 117.47 | 3,489 | |||

Nov-19 | 81 | 10 | 30.43 | 2,807 | |||

Oct-19 | 102 | 10 | 48.14 | 2,638 | |||

Sep-19 | 54 | 10 | 102.20 | 2,390 | |||

Aug-19 | 27 | 10 | 118.24 | 1,938 | |||

Jul-19 | 11 | 10 | 91.40 | 1,503 | |||

Jun-19 | 23 | 10 | 80.74 | 1,216 | |||

May-19 | 83 | 10 | 38.15 | 996 | |||

Apr-19 | 98 | 10 | 107.86 | 899 | |||

Mar-19 | 94 | 10 | 87.60 | 678 | |||

Feb-19 | 66 | 10 | 117.48 | 527 | |||

Jan-19 | 44 | 10 | 61.82 | 371 | |||

Dec-18 | 27 | 10 | 49.95 | 300 | |||

Starting Bank | 250 | Starting Bank | 250 |

### “What-if” Worse Performance and Profits

But what if things had gone less successfully. Only 9 winning months from 14.

Let’s change some of those original profit figures from positive to negative and see the impact.

Changing Oct and Nov figures from profits to losses and the same for June and July. Here’s how Fixed Stakes and Percentage Stakes compared

FIXED STAKES | 4% OF BANK STAKES | ||||||

Month | Tips | Stakes | Profit | Bank | Stakes | Profit | Bank |

Jan-20 | 49 | 10 | -2.30 | 677 | 39 | -9 | 973 |

Dec-19 | 50 | 10 | 60.74 | 679 | 32 | 192 | 982 |

Nov-19 | 81 | 10 | -15.98 | 619 | 34 | -54 | 790 |

Oct-19 | 102 | 10 | -25.95 | 635 | 38 | -98 | 844 |

Sep-19 | 54 | 10 | 58.30 | 661 | 31 | 178 | 942 |

Aug-19 | 27 | 10 | 72.32 | 602 | 24 | 171 | 764 |

Jul-19 | 11 | 10 | -59.20 | 530 | 31 | -184 | 592 |

Jun-19 | 23 | 10 | -55.19 | 589 | 40 | -220 | 776 |

May-19 | 83 | 10 | 26.77 | 644 | 36 | 96 | 996 |

Apr-19 | 98 | 10 | 81.90 | 618 | 27 | 222 | 899 |

Mar-19 | 94 | 10 | 71.28 | 536 | 21 | 150 | 678 |

Feb-19 | 66 | 10 | 105.65 | 464 | 15 | 157 | 527 |

Jan-19 | 44 | 10 | 58.88 | 359 | 12 | 71 | 371 |

Dec-18 | 27 | 10 | 49.95 | 300 | 10 | 50 | 300 |

Starting Bank | 250 | Starting Bank | 250 |

You can also see how the 4% stakes increased as the bank increased in times of profits and decreased as the bank suffered losing months e.g. Jul & Aug’19.

The fixed stakes bank has reduced from 990 to 677 which is a profit of 427 units (ROC=171%). The percentage stakes bank is 973 which is a profit of 723 units (ROC 289%).

Overall the percentage of bank staking has still outperformed the fixed-stakes. It produced 69% more units of profit .