THE STAT MAN

Appendix E

The sixty-second toolkit

Three tear-out cards: the ten-point price check, the Kelly quick reference, and the safety stack.

Three cards, meant to be photocopied, laminated and kept somewhere less dignified than a shelf. Mine live on the fridge, which my wife regards as evidence rather than decor. They are laminated because coffee and the odd rained-off Saturday have already ruined enough paper, and a card meant to last a season should survive a coat pocket. Nothing here is new. It is Chapters 15, 29 and 32, compressed to the size a thumb can hold at kick-off.

Card 1: The Ten-Point Price Check

  1. Convert the price. p* = b/(a+b) for any fractional price a/b. Say the per cent out loud (Ch.2).
  2. Form your probability before looking. Written down, before the price exists for you (Ch.4).
  3. De-vig the sharp market for fair. Strip the margin; that is the market's honest opinion (Ch.8, Ch.14).
  4. Compute the edge and demand your threshold. Edge = p(a+b)/b − 1. At least 4 per cent on this book's evidence, or walk away (Ch.4, Ch.14).
  5. Ask why the price exists. Name the bias, or concede the error is probably yours (Ch.13).
  6. Longshot? Raise the required edge. The longshot tax understates the true cost of outsiders (Ch.5).
  7. Has the sharp market already moved? If it has eaten your news, your edge is a memory (Ch.14).
  8. Stake by fractional Kelly. Card 2 has the arithmetic (Ch.29).
  9. Record it. Date, price, stake, your probability, the fair closing price (Ch.30, Appendix D).
  10. Audit closing line value monthly. Kill any angle that persistently beats worse prices than the close (Ch.30).

Default output: no bet. Ten points, sixty seconds, every price, no exceptions for the ones that feel obvious.

Card 2: The Kelly Quick Reference

Full Kelly: f* = (bp − q)/b, where b is the profit per pound staked (a/b in decimal for a fractional price a/b), p is your probability and q is 1 − p.

Worked: 13/8, p = 0.40. b = 1.625, q = 0.60. f* = (1.625 × 0.40 − 0.60)/1.625 = 3.08 per cent of the bankroll. Quarter Kelly: 0.77 per cent. Worked: evens, p = 0.55. f* = 10 per cent. Quarter Kelly: 2.5 per cent.

Full Kelly is optimal and brutal: a 50 per cent chance your bankroll is halved at some point on the way. Half Kelly cuts that to 12.5 per cent for three-quarters of the growth. Quarter Kelly cuts it to 0.78 per cent. Stake quarter to half Kelly on a genuine edge. If the edge is not genuine, the correct stake is nil, and the formula already knows it.

Card 3: The Safety Stack

Ring-fenced bankroll, sized while calm → fractional Kelly staking → operator deposit limits → device blocking software (Gamban) → GamStop, free national self-exclusion, locking every licensed operator at once → the phone call: GamCare's National Gambling Helpline, 0808 8020 133, free, 24 hours a day. Each layer does a job the one below it cannot. Skip one and the gap it leaves is exactly where the next losing session finds its excuse. GambleAware closed on 31 March 2026; its commissioning role transferred to NHS England, OHID, UKRI and the relevant devolved bodies, so it is not signposted here.

A betting balance is not a bank deposit. It carries no Financial Services Compensation Scheme cover, and the protection an operator offers a customer's funds ranges from minimal to properly ring-fenced; check before it matters, not after.

This is reference lifted from the book. The chapters are where the arithmetic gets built and argued for.

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