Percentage Staking? Good or Bad?

[SUSSEXTRADER]

Hi.
Just thought I`d get your take on this as during the lockdown I flicked through this old trading book when I started 4 years ago and saw one of the strategies the author used was trading with effectively unequal stakes ie he was laying at less than he was backing, usually around 80/90%, to give him a buffer zone to where he would make a loss.
Now whilst I did some calculation of the maths, this would seem to be a bit skewed as obviously you are favouring one side?
I notice once odds fall lower than 2.0 you then have to back higher than you lay to create that buffer?
Obviously everyone scales out your exit by dribbing back some of your exit stake which extends your "green zone" but obviously that has the effect of reducing your overall profits but does give you that "buffer zone so it`s swings and roundabouts. I suppose that tactic in a way is similar but is it?
I do employ that quite frequently generally but what I wanted to know was whether this strategy of laying with less than you back is profitable long term?
I suspect not and is not true trading and I`ve never seen Peter employ this tactic!

Thanks
Kevin

[Derek27]

I notice once odds fall lower than 2.0 you then have to back higher than you lay to create that buffer?

I didn't quite understand that bit. Surely you have to back higher than you lay at any price?

Can you give an example of what you mean? i.e. back price, back stake, lay price, lay stake......

[SUSSEXTRADER]

Basically if you lay less then you back it does give you a buffer zone of a few ticks green, depending on what percentage of your back stake you put back in.
However, when the odds get lower than 2.0 then the way the maths works it seems as though you then have to back less then you lay.

eg back £10/lay £9 on a price of 5.0
or back £9/lay £10 on a price of 1.7

I did some maths scenarios so I stand corrected if that`s wrong as it was late!
but that would seem to be how it works?

[SUSSEXTRADER]

Sorry misread some of your message.
Yes obviously you are still looking to back higher than you lay but I`m saying when you do that if you don`t use level stakes.

[Derek27]

Basically if you lay less then you back it does give you a buffer zone of a few ticks green, depending on what percentage of your back stake you put back in.
However, when the odds get lower than 2.0 then the way the maths works it seems as though you then have to back less then you lay.

eg back £10/lay £9 on a price of 5.0
or back £9/lay £10 on a price of 1.7

I did some maths scenarios so I stand corrected if that`s wrong as it was late!
but that would seem to be how it works?

You didn't say whether you're backing or laying at 5.0 and 1.7 respectively. Whatever price you back at, you can lay for less than you back to reduce your liability and give yourself extra space. Or you can lay for an amount equal to your back stake for a free bet. You generally lay for more when you're greening-up. But the principle holds true regardless of whether it's over or under 2.0.