Strategy · 2023-11-22

Refined Chip Management: The Art and Science of Betting Investment

Betting as an investment activity is an underappreciated art form, a composite activity that demands deep analysis and precise execution. In this volatile field, every minor strategic adjustment can make a monumental difference between success and failure. Among the numerous decisive factors, chip management stands as a crucial element, akin to the proverbial "last straw that breaks the camel's back".

Philosophy of Chip Allocation

The strategy advocated here is a division and refinement of chip management. Specifically, it involves dividing the total investable funds into 20 equal value units. The core idea of this strategy is to use diversification to spread risk while seeking to maximize returns. The effectiveness of this approach has been proven over the past 7 years, particularly during the period from September 2017 to September 2018, where we achieved an annualized return rate of 495%, far surpassing traditional financial products with a 5% annualized return.

Precision Investment and Risk Control

The ensuing key question is how to increase investment returns and control risks reasonably while maintaining a stable winning rate with these 20 chips? Here, we are not preparing to lose 19 chips and then rely on the last one for a turnaround. In fact, years of practice have shown that we seldom need to use more than five chips. However, this does not mean that only five chips should be allocated, as the constraints of funds and the uncertainties of risks in the betting field require us to adopt a more cautious and refined method of chip distribution.

Practice of the Floating Chip Strategy

The core part of the article proposes a dynamic and flexible chip management method, namely the floating chip strategy. This strategy requires investors to adjust the size of the chips within a certain range to respond to market fluctuations and changes. Before implementing this strategy, investors need to deeply assess three aspects: their own hit rate of betting, whether they have a high-stability betting strategy, and whether they possess effective market adjustment methods, such as "breaking the pattern".

In its implementation, the floating chip strategy includes the following steps:

1. Control the scale of the initial chips to avoid excessive investment.

2. After winning, reduce the next bet by 10% to lock in profits and reduce risks.

3. After losing, increase the next bet by 20% to pursue recovery of losses.

4. When the chip reaches 2.5 times the initial value, apply the "breaking the pattern" strategy for adjustment.

5. If the "breaking the pattern" strategy fails, maintain a higher level of chips until a new market adjustment opportunity is found.

In summary, this refined chip management strategy aims to achieve scientific fund allocation and flexible market response strategies, enhancing the efficiency and efficacy of betting investments.


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