G'day Partypooper. Sorry, I might have gotten things mixed up by replying to several people in the same post. I think I was assuming you thought progressive betting on short-priced favourites held possibilities. I understand now that you were really talking about using 1% of the bank per such selection, non-reducing.

Honestly, I don't think the 48% strike rate will hold up over an extended period, and if that's the case, then it's unlikely such a selection method would be capable of producing a profit at level stakes, and therefore betting it even at 1% of the bank would bust the bank in the long run, though granted it would hold up for quite a long time. You wouldn't actually need a streak of 100 losers though to bust the bank using the percentage of bank staking plan. For instance, you could even have 3 winners with an average price of $2.50 for every 10 selections, while betting 1% of the bank on each selection, non-reducing, and you would still eventually bust the bank. For example:

Assume bank of $1,000. 1% bet on each selection, non-reducing. Winner's average price is $2.50. Assume 20 selections per day.

Day 1. $10 x 20 selections = $200 out. 6 winners x $2.50 = $150 in. New Bank = $950.
Day 2. $10 x 20 selections = $200 out. 6 winners x $2.50 = $150 in. New Bank = $900.
Day 3. $10 x 20 selections = $200 out. 6 winners x $2.50 = $150 in. New Bank = $850.
...

So you can still have several winners, and end up breaking the bank in the long run while betting percentage of bank, non-reducing.

The reason why I like the percentage of bank staking plan though is that as long as you have a system that achieves a profit at level stakes, betting a percentage of the bank will end up far out-performing level stakes, and if and when your system manages to stumble into a losing streak, the system is relatively forgiving compared to progressive stakes betting, and hopeful will protect your bank long enough for your system to find it's feet again.

Realistically, I just think Mad Gambler's 48% strike rate will fall considerably the longer he monitors, and if that's the case, then it will lose in the long run even using percentage of bank staking.

Hope this clears things up. Let us know what you find out if you decide to research pre-post odds-on favourites that end up returning better than odds-on prices. Have a good one, mate.