Different ways of compounding

[Mindfulness]

Hey guys,

I thought it would be good to have a thread which people can discuss and share insights into the different ways you can compound profits and scale up in betting.

I only have a limited understanding of the subject and struggle to clearly visualise which method of compounding is appropriate for a given form of betting.

For example:

I have recently started betting on horses in e/w market (3 places) and so odds can range between 6.00 - 15.00 or even wider.

Naturally there is still quite a bit of variance betting this way, let's say compared to odds-on football singles; which would have much higher striker rate.

As a way to compound and scale, I toyed with the idea of making the stake for my horse racing bets 2% of allocated horse racing bankroll.

So £100 total bankroll = £2 per bet, £105 total bankroll = £2.10 per bet etc.

My concern is that because there should be a fair amount of volatility / variance in my horse racing results due to longer average odds and low strike rate. Would using the 2% of bankroll staking system create added 'volatility' and perhaps undermine stable growth when applied to longer odds bets with low strike rate?

An alternative would be to increase stakes by a small % after each winning month, this just strikes me as a more stable method of compounding given the potential variance of long odds horse racing bets. Am I concerned about nothing here? Or do my rambling speculations have somekind of basis?

Basically I'm not experienced enough with different types of compounding systems to understand benefits / dangers of compounding methods when applied to varying strike rates / average odds.

Any input on this subject would be much appreciated and interesting.

Feel free to share insights on different ways you have used compounding in betting, if at all.

Cheers.

[harry_rag]

Not something I do much because of the issue about hitting limits. Could probably do it a bit more with exchange bets but I'm pretty much stuck in a level/proportionate stake groove. You might be better asking in the racing section, or posting a link to your thread. More people with something of value to add might see it in there.