Betting Exchange Trading Tips - Multi Day Events
One of the best and still little known trading strategies revolves around favourites drifting in the betting at the completion of a day’s play when the event will take more than a day to complete.
Sports such as cricket and golf are notorious for this, with test match cricket being by far the best. For example, in test match cricket, you will find that teams which are on top of the game at the completion of a day’s play are excellent trading propositions. The vast majority of the time, the price of the favourite will drift from the time the day’s play has finished to around two to three hours after that point depending on liquidity.
For example, you laid the favourite at the completion of play at odds of 1.5 for $1,000. Now for most punters, $1,000 sounds like a lot of money for a bet. However, keep in mind that the worst case scenario is that the price will fall to say 1.45. If that did happen, you could bet $1,034.48 which would lock in a loss of $34.48. So even though you are outlaying $1,000 your total liability is only $34.48.
If the price moves to 1.55, then we could bet $967.74 to lock in a profit of $30.65. (This figure has taken into account commission payable at the 5% maximum rate.) If the price moved to 1.6, then you would have made a guaranteed profit of $59.38.
Let’s say that you ‘only’ made $30.65 for the trade. That is a nice income for probably all of 10 minutes ‘work’. Looking at hourly rates, that would be $306.50 based on the assumptions above. In reality, it would be less than this because as much as we would like everything to go our way, it won’t. You will from time to time have losing trades and as such it is very important that you have a stop-loss. That is a point at which you back the team back for a guaranteed loss if the prices move against you. It is very important to do this as this is purely a technical trade and you are not betting on the result of the match but rather the short-term direction of the prices.
Test cricket is the best sport for this approach however golf can be good to trade immediately after a day’s play using the same principles.
If you are wondering how the bet amounts were derived, the ‘Betting Exchange Calculator’ which is available to those who purchase ‘The Insider’s Guide to Betting Exchange Secrets’ is used for perform such calculations. You can discover more information from the website www.bettingexchangesecrets.com.
Author : Matt Elliott .
