[Ted Craven]

Another reprint from the 5th Anniversary Follow Up Issue 25. This one by Doc Sartin, describing his own approach to wagering and money management - a counterpoint to the preceding article by Dick Schmidt. Enjoy!

My Personal System Of Money Management
by Doc Sartin

This article comes at the request of Dr. Alex Milstein, a client and a renowned psychiatrist who, in my estimation, stands head and shoulders above his psychiatric peers. Alex asserts that over the years, he has often tried to prove me incorrect in some of my stands against mainstream handicapping dictums, but his own empiricism has subsequently proved me correct. In the area of money management he cites the two horse wager and the 60/40 dutch as examples that have brought him more profits than following conventional procedures.

In light of the source; I consider this high praise indeed. The Money Management plan offered by Dick Schmidt (Editor's Note: see this issue's installment of the Beginners Column, post #1 above) is optimal for those who bet exclusively to win. It is also the best way to BEGIN your wagering discipline. It is responsible for Dick being the most consistently profitable handicapper in our organization and one of the top two money makers in Pirco (along with Marion Jones). However, both Dick and Marion suffer through occasional losing days. It doesn't bother them (Another Editor's Note: the hell it doesn't!). They have the essential faith and confidence.

Unfortunately, this is not so for many of you. I have devised a procedure that has, for me, almost completely eliminated losing days. I presented it at our Oklahoma Seminar. A few clients who for one reason or another failed to profit from their win bets, did make money from my recommended alternate bank. Their final R.O.I for the day, despite their losing win bets, was 1.39%.

My own money management system (at last a chance to use that word) does not in any way preclude the viability of the ones published by Dick Schmidt or the master, Huey Mahl. Actually it is a personalized version of their dictum. It is tailored for the person who cannot stand to lose by betting win only; and for those who don't wager on a daily basis because of other committhents; and on the presumption that one has at least superficially mastered the skills as presented in our manual, The 55% Solution. In short, the ability to isolate place and show contenders along
with alleged third choices to win.


STEP 1 - Determine exactly how much you are going to put through mutuels on any one day.

STEP 2 - Divide that amount in half. One half is wagered BEFORE the races begin. This is essential Wager on two win selections with a 60/40 dutch. Use the morning line odds to determine your dutch. The other half is designated for place, show, exacta or quinella wagers to be made during the day as determined by odds opportunities registered on the tote board.

The objective: come as close as possible to doubling your total dollar output.

REPEAT: Place all win bets before the first race. If you arrive late, make them at the first opportunity; all at once with only the program morning line as a guide to potential odds.

Example: I will designate $400 as my total expenditure for the day. Therefore, I take $200 and divide it by the number of races I think I have a chance of winning. My average is 5. So I divide $200 by 5, designating $40 per race to win. My bet will be dutched $24 and $16 regardless.

With my other $200 I look for in-the-money and exotic opportunities based on toteboard odds. In appropriate circumstance, I may even add to an already placed win bet based on higher odds or bet a third horse to win if the odds make it profitable. Sometimes I even use suspicious toteboard fluctuations as criteria. Mostly, however, the $200 is wagered in place or show when I see a designated place or show horse with profitable tote board odds. This includes some exactas and, in Nevada, almost always, the quinella.

The result is I usually make as much profit with the alternate $200 bank as with the strictly win bank. The second bank also sustains me on those days when I enjoy a paucity of winners. I will normally back any previously made win bet with a subsequent place wager if the win odds become 9/2 or better. Over 6 to one I will further back the horse to show. My win, place show bet ratio is 1—2—4. In other words, for every four dollars wagered to win I bet $8 to place and $16 to show; but ONLY when the odds dictate profitability.

While my goal is to make a profit equal to my wagering total, I do not always succeed because I have imposed a somewhat unrealistic goal. However, a 100% profit is reached often enough to make the procedure ideal for me. It has yet to have a losing day for me. The worst case scenario to date was a 22% profit. However, it has had days when the profit reached as high as 300%.

To those who can wager on a fairly regular basis and can stand the emotional shock of an occasional losing day and whose handicapping is not affected by losing a race, I recommend betting percent of bankroll based on the Kelly criterion, with a 60/40 win dutch. I also urge everyone to examine the profit potential in place wagering. I am reminded of the story of the renowned "Chicago" O'Brien, a handicapper from the 1930's to 1950. He earned a documented ten million dollars from racehorse wagering. O'Brien's formula was: "Figure them to win, BET them to place".


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