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Some friends and I were discussing various betting strategies. We went over all the staples, like progressions and target approaches, level stakes, the Kelly, and so on.
Then someone brought up the “square root” method. It proved to be the most interesting of all the tactics we chatted about.
Square root staking - sounds a bit intimidating, doesn't it?
But it's not. In fact, it's an easy way of playing up your profits and keeping your staking well under control.
In last month's P.P.M., I introduced the concept of square root betting. Let's just go over it again: You have a Base Bet, say $1 or $2, and your every bet to win is this Base Bet plus the square root of any accumulated profits.
The best way to evaluate any money management method to put it under scrutiny by a risk-benefit analysis. The most effective methods will minimise risk but maximise gain.
Sounds good to me, and I am sure, to you as well. And this is where I talk about an approach which incorporates the risk-benefit power. It's what is known as the Base Bet PLUS Square Root plan.