The 40% Staking Plan has been around for a long time but you
may not have encountered it before.
It was a very popular method of race to race investment in the
1970's and 1980's.
Why then did it fall out favour, you may ask? No idea.
It seems to me it is a lot easier now with things like Excel
spreadsheets to do the calculations for you as when it was popular
last century it was a manual calculation.
Simply put, from each wining bet you retain 40% of the gross
dividend and re-invest the other 60% on following bets.
Say the horse you back is $6.00 and you put $1.00 on it. The
gross return is $6.00.
40% of $6.00 is $2.40 so that is retained in the punting bank
and the other $3.60 is spread over the next 5 bets.
Why five bets? Because that was the winner's price of the last
winning bet. (If it had been 2/1 the 60% would have been re-invested
over the next 2 races etc., etc., etc.)
For example, 70 cents is added and re-invested for the next
5 bets. (Of course it would be an extra 50 cents per bet but you
always round DOWN to the next betting unit allowed.)
If the price is not a whole number, e.g. $4.20, $4.40 etc.,
etc., etc., it gets rounded down to $4.00 (the next lowest WHOLE
number) for the purposes of the calculation.
Remember - you ALWAYS retain the 40% of the winning dividend
to your bank.
staking plan can make up for plainly poor selections.