Betfair Strategy: Common question from those getting started…
How can I build up a bank to practice my trading skills but without very little risk?
Usually it’s met on forums with comments like ‘find your own Betfair strategy’ or simply no answer at all.
But for anyone starting out, that seems near on impossible! How are you supposed to know the reason bottom just fell out of a horses price? Let alone understand how to read all the graphs.
In this post not only will I give you something to start building a Betfair strategy around, but show you how to make a couple of quid for free…
If you’ve spent any time at all in the markets you will have observed all sorts of crazy happenings.
What I’m about to say on the whole is pretty much common sense, but most hadn’t thought of it in this way before:
Successful trading strategy needs to have a significant edge over the market, situation and or everyone else your playing against.
The good news is; most of these people are not even playing against you for value. And don’t even have a Betfair strategy, which, is a pretty big advantage.
So with that in mind, just think about all the different kinds of people active in the market. As I mention in the guide if you have it, all with different objectives for being there.
Participants: Banking a Few Quid…
Some want value others don’t. Some have a well polished Betfair strategy, many don’t. And some do, but can’t keep to it…
Very broadly speaking there are 3 types of trade active;
- Those that seek out value for their every bet matched (Value Takers) these are the ones with a reliable Betfair strategy.
- Those that really couldn’t give a care in the world what price they get (Value Creators) generally your mug punters.
- Those that are trying to be point one but end up being point two when it goes wrong… the frustrated crowd.
Pretty obvious, right?
Of course, so making money shouldn’t be that hard… and it’s not, its making bigger money that’s harder. Every successful Betfair strategy has generally come from common sense, and good research or understanding.
So on the basis that we have 3 groups of people out there, which one are you?
We all know that the first point is exactly who we want to be. The second we shouldn’t ever be allowing ourselves to behave like. And the third we don’t want to be, although when starting out it’ll happen at some point or another… cutting out the third point alone through discipline can really help results and boost your Betfair strategy.
If you’re seeking out every bet you place to be value, then you can only ever ‘offer’ a price (sitting outside the available). Rather than taking the available price for a match.
That’s great… so our hypothetical position is ‘offered’ in the market at 3.20 (Seem image below – Lay bet of £200)
Regardless of where the price is going, if our bet is matched we are already one tick in profit (if the price stays still). Had we taken the price at 3.25 we would instantly be in one tick loss as we can’t exit at 3.25 instantly.
First thing to think of is; over a busy days racing with 35 races on how many trades will you open? Probably far more than 35… and that’d be the most conservative Betfair strategy known to man.
This approach may mean you miss some entries, although assuming they were all matched and you had one trade in each race that’s a 35 tick difference, if we use the example below at £3 a tick – a total difference of £105 on the day. Obviously this is just to illustrate the point, but it’s a key point to any Betfair strategy…
Related Article: Horse Racing Strategies
So back to our example; we now have a ‘value’ entry in the market, all be it for one tick.
If you manage to get your bet matched in such a position, when the price is actually moving in the opposite direction your onto a winner… as you see below.
Being in this position is really quite a good thing. Not only have you got a favourable entry but your now in a position where, and not always but occasionally those people from bullet point 3 are scrambling to get out of a bas position. Providing a value exit as they got it wrong. If they’re in a real panic and on a larger stake (we’ve all been there) they may momentarily move the price that bit more as they scramble to exit.
Although it happens in all markets the tennis is a good one to illustrate the point, you can create a Betfair strategy around it alone. Check out the new YouTube clip below…
(early on at 1:06 I say value creators when I actually meant takers)
Betfair Strategy Clip
For some that may be a lot to digest and think about….
Building a Betfair Bank:
If you want to build up your bank for very low risk, just do what I did in the clip! (it only works on small stakes unfortunately as the huge tennis automation clearly thought of this too. I’ve tried but large stakes are nearly always cued up several points ahead, larger stakes can cause their own problems on exit).