Compound Staking: Turn £1565 into £2968 With This Simple Plan

Our goal here at the
Smart Betting Club is to help you make money from your betting, whether it be for the first time ever or by adding to what you are already making.

(We seem to be achieving this goal too as 85.1% of members reported they made a profit last year)

Yet once you start making money betting – how then can you best keep doing so and most crucially of all…maximise the profits you are making?

The answer often lies in your staking…as by doing so shrewdly, you can make your profits go that much further. After all, the money you put on the right bets from the right tipster, the more you will make.

Yet when exactly should you increase your staking and how and when should you do this?

Allow me to explain just one example way to do so whereby a simple tweak in staking following one tipster could have made a major difference to your profits…

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The 1-Bet-A-Day Tipster & Its Profits…

As part of an in-depth racing tipster review due to be published in the next SBC Magazine (Issue 96 out next week) we spent some time analysing the different staking plans you could use if following their advice and how to maximise your profits.

To set the scene first of all, this racing tipster has a profitable record dating back to 2009 as follows:


It’s fair to say the record is OK with only a 5.2% ROI and 156% ROC (AKA betting bank growth) over 2,400 bets. Certainly it isn’t the flashiest of services, yet does appeal to some due to the steady profits made, consistency and professionalism.

After all, how many tipsters have been going since 2009 and have consistently made a profit from a simple 1 bet a day strategy?

Yet it is this 1 bet a day strategy and the strike-rate of 34.9% that made us take a look at alternative ways of staking when following this tipster, including a method called compounding.

Compounding is effectively where you re-invest your profits to make your stakes bigger. When done right it can be highly effective and equally when done badly – very damaging so you need to know what you are doing.

There are many different ways to compound your stakes but we chose 4 simple and logical example methods as part of our analysis. Below you can find what out exactly what we uncovered.

For each of our calculations we used a £1000 financial starting point and an 80-point betting bank – which is what we advocate for this tipster.

One Tipster, Four Different Ways To Profit

1. Level Stakes = £1565 Profit (156.5% ROC)

For this first method, we wanted to see how much money would be made if we put the same fixed stake on every bet since 2009.

Your profit through this method would be £1,565 or 156.5% ROC and you can see some of the other key calculations such as max drawdown (the biggest drop at any point) in the table below.


2. Compound Stakes = £1999 Profit (199.9% ROC)

In this second method, we calculated what would happen if you adjusted your stakes after every bet. The stake would be 1/80th of your ongoing betting bank.

This method would have made you a much larger profit of £1,999 (199.9% ROC) although the worst drawdown would be that much greater at £1,809. As your profit grows, so does the risk.


3. Compound Stakes 100 = £2379 Profit (237.9% ROC)

In this third method, we calculated what would happen if you adjusted your stakes after every 100 bets. The stake would be 1/80th of your ongoing betting bank.

This approach would have grown your profits further to £2,379 (237.9% ROC) and the max drawdown increases only slightly.


4. Compound Stakes 25 = £2968 Profit (296.8% ROC)

In this final method, we calculated what would happen if you adjusted your stakes each time your bank grew by 25%. The stake would be 1/80th of your ongoing betting bank.

Taking this approach would have made the most profit with £2,968 (296.8% ROC).



The Tipster Profit Train


Greater Risk, Greater Reward

Although these compounding methods do increase your profits, it is worth noting this does come at the expense of extra risk. The max drawdown more than trebles for each compounding method compared to fixed staking and you do need to be prepared for this. As with any investment, the greater the reward, the greater the risk.

Of the 4 methods above, the Compound 25% approach came out on top in terms of overall bank growth and would be our suggested approach if you wanted to move away from level staking.

Its appeal likes in the fact that you only increases stakes after a 25% profit has been made. The downside of the other methods such as the Compound 100 is that you are adjusting your stakes after 100 bets, whether or not you have made a profit or not.

More Professional Tipster Analysis

If you enjoyed this analysis, you can read the full rundown of our findings when SBC 96 is published next week. Alongside this review, we are also featuring 3 other tipsters across a variety of sports and each with a profitable history of making money betting.

For each tipster we review we provide betting bank and staking plan analysis – to enable you to set your betting up in the most professional and profitable manner possible.

So if you are looking for the best advice on how to make money with tipsters – sign-up for a Smart Betting Club membership today.