Percentage Staking
Overview
Stake a fixed percentage of your current bankroll on each bet. Stakes grow as you win and shrink as you lose — providing natural bankroll protection since you can never bet 100% of what remains.
How It Works
Before each bet, calculate percentage% of your current bankroll.
Stake = Bankroll × (percentage / 100)
Example: £1,000 bankroll at 2% = £20 stake. After a win at 2.0 odds, bankroll = £1,020. Next stake = £20.40.
Formula
\[S_i = B_i \times \frac{p}{100}\]Where:
- $S_i$ = stake for bet $i$
- $B_i$ = current bankroll before bet $i$
- $p$ = percentage to stake (typically 1–5%)
Parameters
| Parameter | Type | Default | Description |
|---|---|---|---|
percentage |
number | 2 | Percentage of bankroll to stake (1–5 recommended) |
Risk Assessment
- Risk Level: Low
- Max Drawdown: Theoretical maximum is 100% but approached asymptotically (never reaches zero)
- Recommended Bankroll: Any — plan scales automatically
- Ruin Risk: Mathematically impossible to go broke (you only ever bet a fraction of remainder)
When to Use
- You want automatic compounding of profits
- You want automatic stake reduction during losing runs
- Long-term growth with bankroll protection
- You prefer a “set and forget” percentage
When to Avoid
- Very small bankrolls (tiny absolute stakes may not meet minimum bet requirements)
- You need quick recovery from drawdowns (slow and steady)
Betfair Exchange Notes
- For lay betting, consider whether the percentage should apply to stake or liability (see Lay % Liability)
- Commission reduces effective growth rate — a 2% net stake may effectively be ~1.9% after commission
Related Plans
- Level Stakes — Simpler flat alternative
- Kelly Criterion — Edge-based proportional staking
- Square Root — Slower-scaling proportional variant
- Lay Percentage — Lay-specific variant
Sources
- Plan catalog reference: The Staking Machine — staking plan software with 50+ plans
- Plan mechanics: Mathematical formulas and plan concepts are in the public domain