Flat stakes versus percentage stakes
One keeps the bet size still while the bankroll moves, the other keeps the risk still. They fail in opposite directions, so pick your failure.
On this page
Flat staking means every bet is the same size. Percentage staking means every bet is the same fraction of what you currently hold. They sound like small variations on each other and they behave very differently.
What flat staking gets right
It is easy to audit. A fixed stake cannot be quietly increased because a bet feels good, and a record in a consistently defined unit is simple to compare across a season. Variable stakes can also be reported honestly, but the record must disclose the staking rule rather than compressing unlike stakes into one ambiguous units figure.
What it gets wrong is that it does not respond to a shrinking bankroll. Ten units is 1% of a thousand and 5% of two hundred, and the scheme cannot tell.
What percentage staking gets right
With perfect divisibility it cannot reach zero. Each loss leaves a fraction of what remained, so the bankroll approaches zero without arriving. In practice a stake can fall below the minimum a book accepts or below a precommitted stopping threshold.
What it does not remove is drawdown. After a 40% drawdown the next nominal stake is 40% smaller, but subsequent gains compound as the bankroll grows too. The scheme controls the fraction at risk; it does not promise a quick recovery or make the underlying bets better.
The choice underneath
Flat staking is useful when a stable unit and a transparent record are the main goals. Percentage staking is useful when the aim is to keep each stake proportional to the current bankroll. A smaller bankroll after losses is not, by itself, statistical evidence that the edge has weakened.
Given that an edge published here is an estimate rather than a measurement, uncertainty should be handled in the stake calculation itself. Research comparing raw Kelly stakes with uncertainty-adjusted stakes supports shrinking exposure when the estimated probability is imprecise.
What this does not tell you
Both schemes assume you follow them. A separate failure is a flat staker who doubles up on a bet they like. That is a third scheme, and any risk calculation for the stated flat plan no longer applies to it.
Common questions
What is flat staking?
Betting the same fixed amount every time regardless of bankroll or confidence. It is the simplest scheme and the easiest to follow honestly.
What is percentage staking?
Betting a fixed fraction of the current bankroll, so stakes shrink after losses and grow after wins. With perfect divisibility it does not reach zero, but it can fall below a practical betting threshold.
Which one is better?
Neither in general. Flat staking keeps the unit simple, while percentage staking keeps each stake proportional to the changing bankroll. Neither fixes an uncertain or negative edge.