In finance, the term “portfolio” is used to describe a collection of assets held by an individual investor. The idea is to spread money around a few different types of investment – typically cash, equities (stocks and shares) and fixed income (bonds) – to diminish the risk inherent in each one.
The same principle can be applied to betting on horse racing which, after all, is just another form of investment. A betting portfolio is simply a collection of services and systems that allows you spread your investment and hence increase the profitability of your betting in the long term.
Exactly which services and systems you include in your betting portfolio is largely a matter of personal preference but, if the portfolio is to achieve its purpose, they should satisfy some basic criteria:
Finding profitable horse racing services and systems is not as difficult as it once was. Nowadays, numerous websites offer independent proofing services, so separating the wheat from the chaff is fairly straightforward.
However, before you cobble together the first half a dozen profitable services and systems you clap eyes on and start betting on selections willy-nilly, consider the other vital component of a successful betting portfolio, the betting bank.
As previously stated, the purpose of a betting portfolio is to diminish the risk inherent to each individual service or system, so that you never lose your entire betting bank. You can estimate the size of the betting bank you need by looking at the longest losing run for each service and system you’ve selected for your betting portfolio.
If the longest losing run is, say, 20 points to a one point stake, a betting bank of 40 points should mean that you shouldn’t lose more than half of your initial capital, even if you join the service at the start of a losing run. Of course, past performance is no guarantee of future results but, if you repeat this process for each service and system in your betting portfolio, you should end up with a fairly accurate estimate of how many points you need to set aside for your betting bank.
You may be tempted to create a betting portfolio and start betting with too small a betting bank, but don’t be. You’ll probably end up investing too much of your initial capital to keep your services and systems going on a daily basis and risk losing it all.
Remember that a betting portfolio is intended to generate profits in the long term.
Be patient and don’t have a “knee-jerk” reaction to any service or system that fails to generate a profit in the first month or so of operation. If you choose the services and systems in your betting portfolio carefully in the first place, you should really give them at least three months before you start making any changes.