Once you've become proficient in horse handicapping and can consistently make profitable decisions, effective money and betting management becomes paramount in horse race betting. This is what distinguishes the professional from the casual bettor—a commitment and expertise in horse race betting that ultimately leads to higher profits.
While there are many skilled handicappers, true professional bettors are a rare breed.
At the most basic level, there are only 3 approaches to betting horse racing;
1. Raise bets up when you win
2. Raise bets up when you lose
3. Keep bets at the same level
The approach of consistently betting the same amount, known as "flat" betting, is simple and comfortable for many players. For example, if a player is comfortable with $20.00 bets but not $30.00 bets, they will typically stick to betting between $15 and $25. This approach is perfectly fine, especially if their goals are primarily entertainment or the challenge of handicapping. 카지노
However, if the primary goal in horse racing betting is to maximize profits, a serious player cannot stay at the same flat bet level without considering factors like ROI percentage, winning race percentage, average payoff prices, and more. Ignoring these factors won't lead to optimal bankroll growth.
In the pursuit of maximizing betting profits in horse racing, there are various money management approaches. One approach is to increase flat bet levels by a set percentage with each doubling of the betting bankroll. Another approach involves raising bets after a win, and this method has the potential for the greatest profit increase.
The most commonly used approach is to bet a set percentage of the bankroll. This is often associated with the Kelly formula, which factors in the win percentage, loss percentage, and return to the dollar. While this approach was once touted as the path to profit optimization in horse betting, it has a drawback: it can lead to rapid escalation of bet levels and leave profits vulnerable to being wiped out by a relatively short losing streak, even after a long series of profitable wagers.
In a later article, the potentially risky approach of raising bets on losses, known as "betting progressions," will be discussed further.
Many players who use the Kelly criterion opt for a "fractional Kelly" approach to mitigate its potential risks. It is often considered too aggressive to use more than 1/2 or even 1/4 of the calculated Kelly bet size.
When employing the Kelly method, it's crucial to take profits when your bankroll experiences a significant increase. This helps address the volatility issue associated with the Kelly strategy. By doing this, when an inevitable losing streak occurs, you'll have already withdrawn substantial profits from your bankroll.
Traditional handicapping wisdom advises never betting more than 2-5 percent of your bankroll on a single wager, regardless of your perceived advantage. This cautious approach can help prudent players manage their bankroll effectively.