Horse racing prices drift race after race, day after day. So why’s it so hard to catch a drifting price?
It’s not really. The hard part is knowing when the price action is likely to pick up and just how far the drift will continue. There are lots of horse racing trading strategies built around drifting prices, but the real magic is in knowing the strength of the drift (particularly in a weak market).
This post is about analysing the strength of drifts…
Not Every Drift is Equal…
Whilst there are several drifters in every horse race, it doesn’t mean they are all good trading opportunities. Some are a clear opportunity with plenty of trading promise, whilst others are a weak flimsy byproduct of market activity elsewhere. Sure, you could make a profit trading both of them – but the latter is a lot riskier.
Picking and choosing the right drifts to trade is key, as I explain in this short video:
Pre-race trading is a skill that takes time to develop. Like all good things, it takes some patience and perseverance. If you keep analysing these drifters and creating a feedback loop, you’ll soon start to notice the difference between as poor and solid drift. Hopefully, the video above has given you a fresh perspective on drifting prices. Quality over quantity as the saying goes!