In today’s article, we are going to take a look at the Betfair trading strategy “Scalping” specifically looking at how to use the strategy on UK horse racing.
First off what is scalping on Betfair?
Scalping is a strategy that can be used on any sports market however it is most commonly used in the pre-race horse racing markets. When done properly scalping can be a very effective way to generate profits from the betting exchanges. See this full Betfair scalping guide first.
Betfair Scalping On UK Horse Racing – The Basics
How do you actually make a scalping trade on Betfair?
Good question, let’s take a look at how a scalp trade actually works.
One of the big advantages of the betting exchanges is the ability to back and lay. Allowing us various ways to approach the market. Scalping is a strategy that allows us to be in and out of the market very quickly with the aim of generating a small profit.
Let’s take a look at a theoretical example using the Betfair interface. Then after you understand the basics of Betfair scalping we can look at a live video example.
In the image above you can see that I have put in a lay bet (a bet that the horse will lose) of £50 on the horse Carnival Zain at odds of 8.0. If this bet was matched, I could then place a back bet of £50 (a bet that the horse will win) at odds of 8.2.
Should the second bet be matched a risk-free bet of £9.80 would be created on the horse Carnival Zain to win. This is due to laying the horse at lower odds than I backed it.
One of the great benefits of scalping is that when you create these positions, you can equalize the profit across all outcomes.
By taking advantage of small movements in the markets, small profits can be made on a consistent basis.
Betfair Scalping On Uk Horse Racing – Live Trading Example
Alright, so we have looked at a theoretical example of how scalping work.
Now let’s take a look at a live trading session, where I used the Betfair trading strategy scalping to make a profit from the markets.
In this example, the trading interface that you will see is Geek’s Toy.
“Geek’s Toy is software that allows you to trade on Betfair much more efficiently. It allows you to see data at a much faster rate then the regular Betfair interface. Allowing you to react quicker to changes in the market and it also allows you to make trades at a much faster speed.”
For anyone that is looking to use techniques such as scalping in fast-moving markets. Software such as Geeks Toy is a must.
Top Tips For Betfair Scalping On UK Horse Racing
Building your understanding of how scalping on Betfair works?
Great, let’s keep building that knowledge and look at some of the top tips we have for scalping the horse racing markets on Betfair!
Identify races that are suitable for scalping
Not all races are suitable for scalping. Ideally, you want to use scalping in races that are high quality, have decent prize money and have a good number of runners. The reason for this is that higher-quality races are usually less volatile in terms of odds movement.
When using scalping we don’t want odds flying from 5.00 to 4.0 in the space of 30 seconds. We are looking for smaller movements with plenty of liquidity and money being matched on both sides of the market.
Know the best time frames for scalping
We want to be using scalping when there is good order flow in the markets. The best time to use a scalping strategy is usually in the 1-7 minute period leading up to the race starting.
In early markets, there isn’t enough money matched in the market to scalp effectively. The markets are still forming and there are often big movements in the market.
This means that if we were to try and scalp these markets there is a danger our bet would be taken and the odds would continue to move in one direction. Leaving us in a position where we would be forced to take a big loss.
Set yourself up in favourable positions
When scalping we are looking to be in and out of the market with the smallest amount of risk possible. Experienced scalpers will often look to put themselves in strong positions before they are matched in the market.
If you look at the image above you can see that rather than just jumping in and taking the odds that are readily available. The back bets (blue bets) and lay bet (yellow bets) are placed in positions that should give an advantage when matched.
There are three £100 lay bets placed at 8.4, 8.2 and 8.0, along with three £100 back bets 9.0, 9.2 and 9.4.
In this market which looks to be a solid for market for scalping. High liquidity, small trading ranges and doesn’t have a huge amount of volatility in odds movement.
Putting positions on either side of the market allows scalps to be made in either direction. We are not relying on one bet to be matched and then entering a new trade. Our strong positions allow us to take advantage of the flow of the market in either direction.
Scalping UK Horse Racing Markets vs Australian Horse Racing Markets
Betfair doesn’t just allow you to trade the UK horse racing markets but also gives you access to international markets. One of the horse racing markets that people sometimes look to trade is the Australian racing market.
Here are some key things that you should be aware of!
The biggest thing you should be aware of is the difference in liquidity between UK and Australian horse racing markets.
This is an Australian horse race 30 minutes before its due to start. You can see from the image that only £20 in total has been matched on this market.
Compared to horse racing in the UK, Australian races in general are going to have much less money matched on the market making it more difficult to trade.
If you are looking to get involved in these markets, the best approach is to wait until the immediate minutes leading up to the race starting. For scalping you may have to wait until 1-2 minutes before the race starts,
The lower of amount of money in the market also means you should be using lower stakes. Larger stakes can make it much harder to exit your position.
Overall the Australian horse racing markets do offer opportunities to profit from pre-race trading. If you are looking to start small and build up your market experience then they are well worth a look at.
For stronger betting markets and bigger opportunities to profit, the UK markets are preferable.
How Much Can You Make Betfair Scalping?
With a Betfair scalping strategy you are often looking to make small low risk profits on a consistent basis. However small consistent profits can really add up!
For example, your average profit from one race using scalping may be £4.00 initially.
Looking at today’s racing card there are 44 races, now not all of these races may not suit a scalping strategy. For some of these races you may need to look at using a swing trading strategy.
Let’s say however that you can scalp in 25 of these races.
25 x £4.00 = £100
That’s not bad for such a small amount made per race, it’s also money that the tax man can’t take off you. As your experience in the markets grow and you become more confident in your strategy. That average profit per race is also going to grow.
Let’s say after a year your average is now £5.50 a race.
25 x £5.50 =£137.50
This rate can keep increasing as you become a better trader. Experienced traders can make thousands of pounds profit in a week.
To prove that this is possible here is a video where I shared some weekly profits made from trading horse racing.
In this article, we have covered how Betfair scalping on UK horse racing works. When applied properly in the right market environment it can be a very profitable Betfair trading strategy.
If you want to continue to develop your knowledge of trading the horse racing markets, we have several articles and videos to help you do so.
Looking to do this professionally or create a nice side income?
We have our highly-rated trading course which covers everything you need to start making a profit from your horse racing trading.