TheSnapper

TheSnapper's Bank:         $1 545,23
TheSnapper's Start Bank:     $198,00
       
Mr. Kelly's Bank:         $3 111,10
Mr.Kelly's Start Bank:         $20,00
       
Longshot Larry's Bank:         $169,56
Longshot Larry's Start Bank:     $100,00
       
Shannon's Demon:         $1 777,20
initial investment:        $1 779,94
profit:                 -$2,54
       
[b]Total Funds:         $4 823,35
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A big day yesterday for Mr.,Kelly and I. Longshot Larry had the day off yesterday as between the betting and the poker and other stuff going on it was getting just too busy even for me! I was 3/4 for $33 profit and the big guy went a solid 5/5 for $274,64 profit. So, it was a (very welcome) $300 profit day yesterday for the bank.

There have been a few questions about the ratchet, so let me just say a few words about it now.
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The ratchet

Take your betting fund and cut it in half. So, if you have $1000, then your ratchet should be at $500. You now have $500 to bet with. YOu use $500 as your stake for your Kelly bets. YOu take the other $500 and invest it. YOu want to achieve 10-20% profit per year with it and compound that using Shannon's Demon (see my other posts about that). Let's say you win $100. Your bank is now $1100. Your ratchet is now moved to half of your bank, so $550. YOu withdraw $50 from your staking fund and put it in your investments. You are now using $550 for your Kelly bets and you have $550 invested safely away from Betfair.

Let's say you lose. You lose $200. Too bad. Your stakes should be now reduced to smaller levels based on $350. YOu still have $550 invested elsewhere. The point is that your ratchet protects your total bank and gives you a line which your kelly betting cannot cross. Money beyond this "event horizon" is outside of your betting universe and should be put to work in stocks, bonds and other capital investments to continue growing. The profits from betting flow ONE-WAY into this investment account. The ratchet continues moving up each time your bank hits a new high. I believe that my ratchet plan along with disciplined Kelly staking will result in better than level-stakes profits and lead to long-term success at gambling and investing (the two are the same thing, in my view). My results speak for themselves.

I hope that helps.