The Square Root Staking Plan

The square root plan can be a very effective plan, if the winners come thick and fast. The basic premise is to start off with a stake that is a certain percentage, (5%) of the bank. So if we start with £100, the initial stake will be £5. So every bet is £5, until our balance exceeds our initial starting balance, (£100). Once this occurs, we take the Square Root of the difference, and add that on to the next stake. This continues until, either the balance falls below the starting balance, (at which point the stake becomes £5 again) or the balance has grown to exceed the Starting Balance + 50%. At which point the 'Bank' becomes this figure, and you then bet 5% of this amount, (£7.50). Take the square root of any profit that exceeds the '£150' and add that to the stake, and so on. If the balance falls below the initial starting bank, the 'Bank' does not get reset to this amount. ie, the 'Bank' can never go down, only up.

At this point, the current Bank, is higher than the 'Starting Bank' so we take the square root of the difference, and add this to the stake:

So we continue placing our new stake on the next horse.

Now, because the current bank has fallen below the Starting Bank, we go back to betting £5.

So now, we are back above the Start Bank, so we need to work out the Square-Root of our profit:

And so it continues:

At this point, we have now increased our Starting Bank by more than 50%, so we need to reset the 'Starting Bank' to £150. This has 2 effects, our 'standard stake' now becomes £7.50, (5% of £150) and we now take the square-root of any profit that exceeds £150. This continues until we reach our new 'target' of £150 + 50% = £225.

The bank has now fallen below the 'new Start Bank' of £150, so we ignore any square-roots, and just use the 'standard stake'