A Constant Percentage Of Your Bankroll
A Constant Percentage Of Your Bankroll
One strategy is to maintain a constant percentage of your bankroll with each bet. It's assumed that this method will protect any gambler from losing their entire bankroll as the amount to be bet diminishes as your bankroll diminishes.
It's a little like Zeno's paradox. The arrow will never reach its target as it halves the distance at each interval. However, while unlikely, even betting 5% of a £1000 bankroll will leave you with a bankroll of less than £200 after 33 consecutive losses.
But more to the point, it assumes equal value for each bet and additionally it expects equal odds being offered for each bet.
For example, would you really want to bet the same percentage on a 1.70 favourite as a 3.50 outsider without any recognition of their respective value?
The answer should clearly be no.
Further, even if you only bet on 1.70 favourites, is the probability of each 1.70 favourite winning identical in each instance? In other words, does each 1.70 favourite offer the same value? It could be the case, but it's unlikely.
The Constant Percentage strategy, while offering a manner of managing your bankroll, fails to recognise value as a key part of a successful management strategy. Essentially, in the end, it will only manage the way you lose your money.
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