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This means that you, as a trader, could potentially back every selection in a market, and still make a profit, assuming that you backed at prices that gave the book an under-round, rather than an over-round.
The theoretical price of each horse should be such that if you laid each horse with a certain differential stake, your winnings and, indeed, losses would come to zero, regardless of which horse won.
Yet, if you were to back each horse at an average price above 4. As the name suggests, this strategy has you placing a lay bet on every selection in the market — usually a horse or greyhound race — with the hope that you can catch enough trades at the right prices to ensure that you make a profit, no matter what the outcome of the event.
The usual way in which this strategy is implemented is by placing orders across the market at odds below 2. This way, if a minimum of two selections are taken up, then a profit is guaranteed.
If you are lucky enough to get more than two selections, then the profit rises, quite spectacularly. On the face of it, this approach to trading appears to offer lucrative rewards with a very simple strategy.
The experienced trader will tell you that a deep knowledge of racetracks and their peculiarities is the secret to unlocking the lay-the-field conundrum; as they say, fools rush in where angels fear to tread….
There are several different ways you can trade and these vary based on what it is you are trading as odds react differently in different markets:.
This is the term used to describe very short term backing and laying of just a few ticks apart in quick succession to tie in small profits.
It is best done in markets where the price is fast moving and trades will usually only last seconds rather than minutes.
An example of this would be to back under 0. This is the most common method for trading on Betfair and still requires the movement of odds, but at a greater movement of odds, similar to the first example we showed you above.
The risk on this is usually a lot greater as you are usually relying on an event of some significance or a draw out decay in the price to occur.
You will have often seen a price decrease close to kick-off in football as punters look to get their money on a particular selection.
Perhaps the biggest thing to consider is that when you trade solely on one market, the commission that you pay is based on your total profit on that market.
So you will pay more commission, and is something to factor into your calculations. Betfair offer such a range of markets, especially in football that essentially offer the same possibilities, but just have a different way of stating them.
And what you will find is that some markets offer better value than others even though they are essentially the same thing.
For example, if you lay Correct Scores , , , , that is essentially the same as laying under 2. However, whilst this is something to be aware of when you gain a greater understanding of trading, it is important to know that the opportunities to profit here are decreasing.
Betfair have developed a cross market matching tool that takes advantage of liquidity in one market and uses it to seed another. This constant sharing of resources between markets acts to make the price more consistent across all markets.
This is used across all football events, but just for a selection of markets. It is unclear how Betfair will look to develop this in the future. When you first get started on your trading journey, the most important thing is to set aside a bank for trading.
This may sound negative, but it takes time and patience to learn how to trade and there is a good chance that you will lose a lot of your trades whilst you navigate your way through the markets.
It is important that you detach yourself from your initial deposit emotionally as your mindset is vital to long term success. If you already use Betfair for general betting, look to do that activity elsewhere and keep your bankroll solely for trading.
It makes tracking both your trades and your progress far easier. There is nothing worse than your computer or internet failing and you having to wait to get back online to check a trade.
So a mobile phone where you can scratch a trade in the event of an emergency could be a life saver. In this day and age with a plethora of sports available, it is easy to get over enthusiastic and trade across numerous sports.
All this will do is confuse you, so pick a sport that you understand the most as this will speed up your learning process. Once you become a master of one sport then you can look at other sports , but no sooner.
Youtube videos also are a great way of furthering your knowledge and you can watch videos with various different levels of difficulty if you need a visual example of how to do something.
You could quite honestly write an entire book on different trading strategies, so this is where you need to do the hard work.
There are hundreds of different videos on YouTube, various books, internet guides and discussion forums on the subject.
So make the most of it! One thing to remember is, the smaller the market s you pick to specialise in, the bigger your advantage could be.
However, there is less information out there to learn about it. Pre-race scalping — If you watch a market before a horse race you will notice that prices move in small increments allowing you to trade and make small profits quickly if predict the correct movement.
Profits will only be small from each trade but they will build up! Back to lay horse races — The key to this is to spot horses that will start fast.
You back the horse pre race as near to the off as you can and then lay it once it goes ahead early in the race and the price decreases. Swing trading a horse race — By understanding the markets and how the graphs move you are able to determine price movements and trade large swings in price.
Lay the draw — The most common football strategy. This is done by laying the draw and then re-backing it when the favourite scores and the draw price increases.
Trading team news — Your knowledge of teams has to be spot on and you need to be quick off the mark. But there are lots of opportunities for price movements when a stronger, or weaker starting line up than is expected by the markets is announced.
Twitter is your friend here. Going without a goal less draw for 8 months before they met Crystal Palace. Which you can read here. Its seems that Rebelo believed that at half time odds of 7.
Based on what he had seen in the first half. He knew that these odds would have to move quickly and felt that the confidence in Crystal Palace players would increase as time went on.
This is an excellent example of when it is profitable to go against the crowd and take a contrarian betting stance. Caan Berry is a renowned horse racing trading.
Using a variety of different Betfair trading strategies to profit from the horse racing markets.
One of the simpler strategies that Caan Berry uses is to identify strong front runners in a race and look to profit from them taking a prominent position early on in a race.
Caan will often highlight potential front runners on both his facebook and twitter pages. Looking to trade front runners in the horse racing markets is a great beginners strategy.
Given that it is fairly straight forward method. If you are looking to start profiting from the horse racing markets then this could be a great strategy to look at.
Caan has also produced some excellent educational products aimed at people looking to trade the horse racing markets.
Is what you might be thinking. True I am not a top of the food chain sports trader. Which in turn I suppose makes me a successful sports trader.
Yeah anyway Betfair trading strategy number five. My personal favourite pre-match trading. The simplest way to pre match trade the football markets is by reacting to team news.
All you need is knowledge of the teams that are playing and some patience. Cup games are often an excellent opportunity for pre match trading.
As the market is often unsure of the first eleven that is going to be fielded. This is because some managers use cup games as an opportunity to rest key players or give youth players a shot.
In the above example Chelsea were due to play Newcastle at home in the FA cup. Yet, you still need to predict the market correctly if you were to become a profitable sports trader.
I tried to explain that via showing my trading style in a numerous videos I uploaded at YouTube. The video that attracted the most viewers is this, so I guess it will appeal to you the most as well.
I found betting exchanges in I used to bet the regular way in online bookmakers till then and like most, I initially found it difficult to understand what is going on in a betting exchange.
A total chaos that drove me away in the beginning. Little did I know that I would return a couple of weeks later and become a full-time sports trader!
That happened when I bumped into a video online, where a sports trader explained how he was making money by trading horse racing betting odds.
He bragged that he rarely had a losing day! Finally, after watching his video over and over again, I pulled the plug and deposited my first euros in Betfair.
That was my first and only deposit I made in the betting exchange. The kind of trading that Adam showed and I built my skills upon, is called scalping.
Scalping is trading miniscule odds movements, making small but constant profits. Yes, scalping is trading on steroids.
You need speed for scalping. No, a 24Mbps internet connection does not guarantee the speed I am talking about.
Ever played a video game online and experienced lag? Now comes the best part: I began scalping with a 56Kbps dial-up internet connection.
Odds were refreshing every 2 seconds minimum. Talking about dark ages. Even under those circumstances, I managed to double my bankroll during the first month of sports trading.
Yet, it was obvious I was handicapping myself. Upon installing a broadband internet connection a month later, my winrate skyrocketed.
I did have losing days, but never did I have a losing month , like Adam. Skillful traders could actually make money in almost every horse race! The best handicappers and sports bettors could not beat that.