The sense of the strategy is that you decide the size of your bank (the sum of the stakes, which you spend for the stakes at the book-maker) and the sum of each of your stake is equal to the fixed percent of your bank.
So if your bank is 100$ and the percent is 10%, your stake is equal to 10$. If you lose, so your bank will be 100$-10$=90$, and the next stake will be 90$*10%=9$. The same is done in the case of the winning.
Theoretically, playing with this strategy you cannot lose. So one of the purposes of the financial management is reached – it’s the impossibility of the financial crash.
But it’s only for the first look. Because if you get into the stripe of the unluckiness, the counted size of the stakes can be less, than the minimal stake at the book-maker. That’s why the use of this strategy in the pure kind cannot bring anything good to the player.
The practical use of this betting strategy.
Using in the pure kind isn’t recommended, though it’s possible to use the strategy with some level of the changes. You can change something in the size of the bank, and also in the kinds of the stakes. I mean you can have some percent from the bank for the stakes for the ordinars, and also on one kind of the expresses, on another kind and so on… however you can set the different size of the percent depending on the different sizes of your bank. The improvement of given system is the Kelly Criteria.