Having thunked a bit about how to increase my profits I've decided to introduce a more aggressive staking plan.
I'm going to stake 5% of my bank and ratchet up at £10 intervals.
Minimum stake £5 and maximum £30.
bank £100 -> £ 5.00 stake
bank £110 -> £ 5.50 stake
bank £120 -> £ 6.00 stake
.
.
.
bank £600 -> £30.00 stake
There will be no reduction in stakes for losses unless the bank falls below £110, and if it does that the stakes will reset to £5.
Once the bank reaches £600 I'll withdraw each day as I don't see much to be gained from staking higher than £30 (but that might change).
I might even have a virtual bank, as there is not really any need to keep more than £100 in the bank even with £30 stakes.
Bank is currently at about £80.
I've also decided to not get involved in the market before the off as this sometimes works, but other times doesn't and is more of a distraction than a help.
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Hi Cran
ReplyDeleteAvid follower of your blog, have recently started one of my own, would really appreciate a link exchange
http://layawayforaprofitableday.blogspot.com/
Link added :)
ReplyDeleteHi Cran,
ReplyDeleteWhy not utilize all of you bank? So long as you stick to your stop loss any losses you incur will be manageable and you'll increase your bank quicker. I don't see the point in having a £100 bank if your only going to utilize part of it. I've always tried to use all of my bank (equal back & lay amounts obviously). I understand it may act as a safeguard and suit you approach to risk but why not give it a go. For me that approach only becomes an issue once you get up to about the £2k mark.
Just a thought, congrats on the 50K page views.
Good question...
ReplyDeleteBecause if a horse gets stuck in the stalls, it falls at a fence, the saddle slips, the jockey falls off, betfair crashes, my pc crashes...
Stop loss is fine in theory but in practice it is about as useful as a chocolate tea pot, especially when trading in running.
It will give you losses on noise/spikes but it will not protect you when the price is really moving.
So in answer to your question, there is always a risk of losing the whole stake so betting the whole of your bank is foolish imo.
If your account only has a small % of your actual bank then it's fine to bet the full amount of your account, because your actual bank is bigger and you can reload it... which is what I mean by a virtual bank, i.e. keeping £100 in my account but trading it as if it is a £600 bank.
I understand, but I wasn't saying use an automated SL, I meant what you would manually cancel a trade at. Spike are the biggest enemy of an automated SL and I personally don't use them however, I do cancel trades manually at a given point provided I feel the move is real and not a spike. I also didn;t realise you went in running either so your staking makes more sense. Sorry for the confusion, I'll try reading more frequently before opening my cyber gob again :)
ReplyDelete