The Importance of Staking Plans
Deciding how much money we place in a sports bet is the most important aspect when it comes to betting. The stake selection determines the risk we run, and the potential profit. Therefore, if we want to be successful in betting, we must choose the stakes very well.
The stake is a fraction of our bankroll that we risk on a specific bet. There are different methods to calculate what bankroll percentage we must apply to each bet. These methods are what we call staking plans.
Types of staking plans
There are different staking plans to define how much money to place on each bet. The most common are the following:
Full Stake method: the full stake is the maximum percentage of the bankroll we can place in a bet. Here the bettor’s confidence degree about a possible event outcome comes into play.
That confidence will be evaluated with a score from 1 to 10, with 1 being the minimum confidence level and 10 the maximum. The ideal is not to risk more than 5% of our bankroll in each bet, especially if it is a beginner bettor. On this scale, stake 1 can correspond to 0.5% of the bank and 10 to 5%, increasing 0.5% for each point.
The formula for calculating the betting stake in this way is as follows:
Stake = (Bankroll * Full stake * stake value) / 10.
Suppose we have $ 100 of bankroll, we bet with a Full Stake of 5%, and we trust the bet a lot and assign it 8 points. Then, the formula would look like this: (100 * 5% * 8) / 10. So, we’ll bet $ 40 on this case.
Stake for fixed prize bets: This is a simple and effective system. It is about placing all our bets seeking to obtain the same prize always. The calculation formula is easy:
Stake = Prize / Odd
Imagine that you work with a 10 dollars stake limit. After analyzing an English Premier League match between Everton and West Ham, you decide to bet on Everton’s victory with a 1.7 odd. So, the calculation would be:
Stake = 10 / 1.7 = 5.88 dollars
Since the odds can never be less than 1, you will never exceed the $ 10 stake limit you set.
The Kelly Criterion: this method gives us the stake that maximizes long-term benefits in sports betting. Its calculation is as follows:
Stake (%) = [(PR% x C) – 100] / (C – 1)
Stake (%): percentage of the bankroll to bet
PR%: the bet’s real success probability (as a percentage).
C: odd of the bet
The Kelly criterion is based on some hypotheses, such as the exact knowledge of the real probability.
Any of these staking plans can be useful depending on whether you are a risky or conservative bettor. Comparing the bookies’ odds, following recognized tipsters, and being well informed will allow you to define how much to bet.