The type of horse required
In Stakes racing most horses have limited careers, the better the horse the further up the racing structure it can usually climb and the more wins it may be able to accumulate with the very best horses able to race at the very top echelons of the racing structure.
Whilst certain standards are required for each level of racing these standards fluctuate both from Season to Season and also as any Season progresses. A number of horses will unfortunately struggle even at the entry levels of Stakes Racing and definitions of what is required for a horse to be competitive differ from trainer to trainer. Interpretation of both time trials and results are the key to understanding your horse and it's potential.
The more distances and goings that a horse is deemed competitive at the more opportunities the horse will have to progress up the Stakes ladder, and even horses below Challenge class can have the opportunity to earn decent sums of cash if campaigned successfully.
Campaigning a horse in Stakes Racing
G1 horses
2yo
Higher quality horses in this grade that are slightly below Challenge class should be capable of accumulating at least 6 or 7 wins during their lifetime and each race in the early stages of their career should be considered carefully to help maximise their potential profits, ideally being kept to Grade 1 events rather than Ungraded races. Whilst there is a natural order of progression to the Race Shedule (Maiden/Novice; Novice/Progress; C Division etc..) it is not however always the best use of a 2yo horse to follow this. For example whilst the horse may well be more than capable of taking an easy win in a C Division race - if field sizes (and therefore potential winnings) are larger in Level Weights or WFA races and it is felt the horse may be up to the task then it would be better to try to take the third win at that level. In 2yo racing the majority of Challenge horses are campaigned to keep the wins down which often opens more opportunities to better G1 horses below that level.
For the first win both Novice and Allowance races can offer a higher prizefund compared to Maidens (depending on field sizes) although the Allowance route may require an initial deliberate loss to maximise the chances of negating a poor random. It should also be noted for the better G1s that Ladbrokes Maidens carry not only a higher nomination cost (and therefore potentially a decent prizefund) but also have a small bonus attached although it should also be noted this is often the route taken by Challenge horses looking to obtain their first win in order to enter the Seasonal Series.
It is also perfectly possible to sneak the first win via a Claimer but if the horse has been given a Class A rating it is highly likely to be lost to another stable. This option is also more suitable to the earlier part of the Season because as the Season progresses these races attract better and better quality horses, the owners of whom having decided they may be nearing the end of their ability to progress through the racing structure.
Certain races have bonuses attached (either cash or BCs) and after each win for a horse the possible options should be assessed as these races can provide quite a boost to earnings. In Ungraded EB Maiden/Progress races these often do not attract the quality of horse one may expect and can provide a nice opportunity for a mid-level G1 to increase it's earnings by winning or placing and returning a small profit in a number of races.
Whilst a win can provide a healthy cash return for a stable, it can also be beneficial to run up a sequence of profitable placed finishes (depending on field sizes) prior to each win and if a horse is able to achieve this it should be regarded as a bonus rather than a disappointment.
Lower level G1s that are deemed raceable by their owners should be kept to non-EB Ungraded races where possible, with early-Season Claimers as a secondary option. It is possible to even sneak the odd Grade 1 race with a lower level G1 but this can be a risky strategy and requires luck both in the quality of horses entered against it and in the allocation of randoms in the race.
3yo
With Challenge racing at the age of three being level weights affairs this can be the hardest Season to negotiate with a G1 horse slightly below that level but generally opens a few doors for those slightly further down the ability ladder that have either been unsuccessful or held back as 2yos but have aged acceptably.
As each generation ages the quality of horse required to be competitive at the lower levels of Stakes Racing (Ungraded Maiden/Novice/Progress/C Division) is generally reduced, a number of the more able horses already having moved beyond these levels. There are exceptions to this, primarily being Challenge horses that were campaigned with an eye on weight as a 2yo but have not aged well, the few higher quality 3yo purchases from the Sales Ring and the occasional 'monster' of a horse that was held back at age 2, but if the owners of such horses are sensible they would be better off targetting the more valuable Grade 1 events.
A number of mediocre G1 horses will be able to pick up 2 or 3 'soft' wins in Ungraded races as 3yos (preferably the EB variety) and, while they may not retain any long term prospects, can at least perhaps recoup their original cost and with a few profitable placed efforts can even return a profit (sometimes a reasonably healthy one).
A number of Challenge types will still be raced sparingly or only in Challenge Series races as they keep one eye on a continuing Challenge career at ages 4-7 but for the better G1s below that level that have retained their ability through the Age Change it is not uncommon in both Grade 1 and Ungraded Level Weights races to come up against Challenge types that are either no longer concerned about avoiding weight penalties or are on the decline. Some 3yo Challenge horses are not averse to the occasional foray into other Ungraded races but with a tendency to win such races without too much trouble these forays are usually limited.
For the better G1s below Challenge level a drop into Ungraded races may well be necessary in order to pick up a few more wins as a 3yo but the decision does need to be made whether or not to keep them below 8 wins in Stakes races as it can be much more profitable to end their career in N8L Claimers (less than 8 lifetime Stakes wins) than to keep racing in Stakes races. It should be noted that Claimer wins do not count toward this total and it is not an uncommon occurrence to see horses with 7 or less wins in Stakes races spend almost their entire career from ages 4 to 7 in such races, often changing stables many times and accumulating multiple Claimer wins.
4-7yo
With weight concerns back on the agenda for most horses still looking at pursuing a Challenge career they are much less likely to be seen outside of that sphere, Level Weights and WFA races until approaching retirement.
Similar to the 3yo Season there are further opportunities for lower ability G1s at the lower levels, this time not having to worry about new purchases joining the fray as Sales Ring purchases are limited to 2yo and 3yo horses. Standards required are usually also slightly lower than during a 3yo campaign as even more horses have already moved beyond these levels or have been retired.
Those G1 horses slightly below Challenge level that may have struggled during their 3yo Season but who were kept out of Ungraded races may finally find a little relief and be able to pick up a number of Grade 1 races before owners thoughts turn to Claimers.
N8L Claimers hot up slightly as the end of each Season approaches with owners more willing to lose better horses in lieu of another win or a small cash injection and it can sometimes be wise to give horses aged 4 to 6 that are destined to see out the majority of their days in these races the final month off each Season.
G2 horses
2yo
Higher quality horses in this grade should ideally be raced to win as much as possible to maximise earnings before having to go through the Age Change from 2 to 3. Age Changes for G2 horses can have a much more dramatic effect than on their G1 counterparts (although they can still be cruel in that sphere too) and it is not unknown for a top G2 at 2 to be reduced to a mediocre Claimer by the time it reached the age of 4.
G2 horses should be kept to Grade 2 races with very few able to compete in Ungraded races and Gr1 races should never be entered. The exception to generally not entering Ungraded races is when planning an Allowance coup with a somewhat decent G2 in which case it should be raced to it's minimum ability to maximise the chances of subsequently landing the coup.
With no Challenge racing for G2s there is little point in any trainer attempting to keep the weight down and this combined with a lesser range between the abilities of top and poor G2 horses results in G2 racing being much more competitive in general with the random factor playing a larger role in the outcome of races.
3yo
As previously mentioned Age Changes can make or break a G2 horse and as much as a top 2yo can become a moderate 3yo the reverse is also possible but is perhaps less rarely seen although it is sometimes worth taking a further look at a previously mediocre 2yo after the Age Change.
As with G1 racing mediocre ability G2s can have the opportunity to pick up a few wins in lower level Stakes races as the standards required become lower as the better horses either already have or will shortly move up the racing structure.
4-7yo
Again the Age Change from 3 to 4 can have a sizeable impact on the prospects of G2 horses and it may be worth taking another look at those that were deemed marginal in terms of being competitive at age 3.
Again standards are generally even lower in the lower level Stakes races and a small racing profit is perfectly possible from a horse that was deemed pretty poor at age 2 but has since matured reasonably well.
In general
Whilst it is generally better to restrict a horse as much as possible to races where it is scheduled to run without a weight penalty there can be circumstances whereby its chances of winning are improved by opting for a race lower down the racing structure and carrying a penalty or two.
This is most commonly encountered with horses moving through the Divisional races (A Div, A&B Div, B Div etc.) where there can often be a number of slightly superior horses still competitive in the higher division and considerably weaker opposition in the lower division. Race results in the higher division are often indicative of whether a horse is able to compete against the current opposition at that level or whether it may be worthwhile seeing if it is better raced under a penalty in a lower division. Alternatively it can also sometimes pay to give a horse a break to allow either the opposition to move up a level or to earn a few more penalties by winning races.
Although the different Class of horse (A, B, C, D) have no relevance in Stakes Racing they can give an immediate impression of whether a horse is in the higher or lower echelons of each grade G1 (A/B) or G2 (C/D). It should be remembered though that each individual Class encapsulates horses with a range of abilities and it is not uncommon for higher-end horses in one Class to be better than some lower-end horses in the Class above and whilst Challenge horses will likely always be granted Class A status there are a number of examples of Class B horses that would be regarded as decent G1s and are more than capable of taking a few wins in Stakes Races even if encountering some of less able Class A horses.