Staking sizes and compounding

[Sovereign]

I'm wondering if some of the more learned and experienced traders on here could offer some advice on approach, as far as staking is concerned.

I have a strategy that I am in the process of testing and on low stakes, currently, and probably to stay that way for a month or possible two until I determine whether it's likely to be successful/profitable or not in the long term. I have a set liability per market, and while my individual profit/losses tend to fluctuate depending on the odds my bets are matched at, that liability allows me to control the amount I risk per market.

I have been thinking about the best way, however, to increase this and thus increase my stakes over time once I am confident it is a success. I considered, perhaps, a percentage of bank, so that losses would lower it, and profits raise it, and over time (if it is indeed profitable) this would mean my stakes growing and growing. I understand that this would inevitably run into a limit (in terms of what I can get matched, how comfortable I am with the liability at risk, diminishing returns etc) but I am trying to think of how I can use compounding profits to increase my trading bank and to make my strategy more efficient in a longer period.

Would this be a sensible approach, or does this fine community think it's risky and without merit? As I say, any opinions and thoughts (and experiences!) offered will help me decide where I'd like to take this (and if not this, any future strategies). If nothing else, it would certainly be interesting to understand how other people approach risk in this game!

[ShaunWhite]

How often were you going to reset your stakes (as % of your bank)? Race by race or once a day/week/month?
Just wondered cos I've been thinging about doing similar.

[Sovereign]

How often were you going to reset your stakes (as % of your bank)? Race by race or once a day/week/month?
Just wondered cos I've been thinging about doing similar.

The million dollar question! Because I use an automation strategy, I was thinking, once it has proved itself, to let it do it every race - I can set it to simply use a % of my balance as a liability. So an individual loss, reducing my balance, would lower the liability (and the stakes) on the next race. I'm not sure whether that's the most logical approach, though in the long term :/

Alternatively I was thinking to perhaps look at it month by month (maybe raise it x amount every £y of profit) too, which might be a less risky approach, I'm unsure.

[jimibt]

i think you may be best to use a fixed liability to lay and a fixed stake on the backs until you can prove that your strategy can sustain the most simple losses. complicating it with %age of bank will never really let you easily see if it's performing to a reasonable ROI. by all means adjust once you have a more robust view on its sustainability. if it were me, i'd look to incrementally up my staking in a very conservative way, all the time potentially reducing my exposure as a %age of my bank (rather than staking a %age OF my bank).

but for sure, there are dozens of exotic mixes that may suit your strategy better and only you will know from your results how to approach those.