Last week I touched briefly upon the topic of compounding  and I have continued to explore this in a feature article released in SBC issue 51.

In this article I have examined some of the various ways you can compound your stakes, using 3 different SBC recommended services to illustrate 3 example methods.

Each service uses a slightly different compounding approach, tailored to suit their strike-rate and profit level. The first service I look at supplies football advice and over the past 3 seasons, have turned £1000 into £17,369 via their recommended compounding approach.

Another of the 3 services supplies 1 daily racing bet at short odds and has a very good strike-rate of winners. Going back to Dec 2008 this would have turned £1000 into £2925.45 via a very simple method. You are unlikely to find growth of 192.5% like this from any savings account.

Of course, not every service is suited to compounding as the analysis of the laying service in my previous blog showed. Here the compounded bank would have returned a lot less profit than simple level stakes.

Compounding also comes with its own risks and it certainly can’t magic a losing product into a winning one. What it can do though is add steady growth and provide another string to your bow when it comes to your betting profits.

My message therefore is quite simple in that compounding can work, but only when you apply it sensibly. Here are some general rules of thumb.

1. Compounding will always make your returns more volatile even when its increases profits significantly.

2. Compounding works best on high strike rate, small losing run systems & tipsters.

3. Luck plays too big a role with big priced selections, so compounding will generally lead to squeaky bum time.

Check out my full article on compounding including the details on some of the best services to use it with by becoming a Smart Betting Club member.

(p.s. Those of you with iPhones – be sure to check out the new app from Oddschecker for mobile odds comparison for all UK racing meetings.)