Royal Ascot is a fast-approaching opportunity ripe for trading on Betfair…
I’ve tried to summarize the main challenges and opportunities for beginners in the following mini-guide. Take a look, it’s an extremely profitable week of the year if you get it right!
Royal Ascot Trading on Betfair for Novices:
These are the main points that represent the significant most challenges new traders are likely to be faced with (and potentially get caught out).
- Major Liquidity Shifts
- Unprecedented Trading Quantities
- Volatility in Interim Races
- Royal Ascot Race Trading Dynamics
- Public Impressions and Prejudice
- Let’s dissect them individually and expound on each…
Major Liquidity Shifts:
Depending on your trading method, this can either be a blessing or a hindrance. Trading volumes during Royal Ascot week are a world apart from your regular racing.
Both strategies can be utilized with larger stakes and less risk, given the increased amount of money being matched, which is unquestionably a plus. However, my preference leans towards shorter-term positions. In the past, I found it easier to rotate stakes on both sides of the spread in a relatively steady market, taking in liquidity.
Tip: Try to locate a market sweet spot where trading volumes and unmatched funds are out of balance.
As depicted in the image above, there will be considerable amounts of unmatched funds. It’s essential to note that most of this unmatched money comes from traders and can be withdrawn rapidly at times.
Unmatched funds can be troublesome when managing your position if you’re over-leveraged. The optimal way to mitigate this is to have a sizeable bankroll and strategically placed stakes. Beware, though, as it’s not uncommon to see exceptionally large bets entering the market throughout the week, particularly on high-profile horses.
Risk control and exposure management are the names of the game.
While it can be frustrating when a limited bankroll hampers your trading activity, strive to stay patient. Allow the money to find you and navigate according to market sentiment. At Royal Ascot, new traders often make the mistake of wanting to be too active. Don’t be tempted to start clicking away on Bet Angel when the Betfair Exchange markets aren’t active.
New traders are often caught off guard by the races between the Royal Ascot features every year. The temptation is to jump from, say, Royal Ascot to Lingfield, where the conditions are markedly different.
Overexposed traders can be seen frantically chasing prices once they’ve extended themselves. Stay patient and seize the extremes for some easy gains, but remember the primary focus should be the Royal Ascot races. It’s all too easy to scalp a large win during a live show at Royal Ascot, only to squander it in seconds at Lingfield in the next race. Anticipate erratic behaviour during these ‘interim races’ on the card.
This holds true for the day after Royal Ascot as well…
Royal Ascot Trading Dynamics:
Apart from the aforementioned liquidity and unmatched money issues, the marketplace characteristics also vary somewhat.
Generally speaking, prices don’t shift as swiftly, and the buildup is more prolonged. In most instances, you’ll be able to start trading a bit earlier as TV coverage kicks in sooner. Usually, the pre-race action heats up in the last 7 minutes or so. At Royal Ascot, the scene starts to buzz about 15 minutes before the post time, with feature races presenting trading opportunities even 25 minutes ahead of time.
Tip: If you’re operating with a limited bankroll, you’ll want to make your move early before too much unmatched money accumulates.
Lastly, be mindful of the overall public sentiment. Where’s the buzz?
Every year at Ascot, there’s a tale of a particular trainer accumulating numerous victories. The media and betting public are enthralled by this, and savvy traders thrive on it.
For instance, Frankie Dettori’s magnificent 7 for those who remember it!
If you’re on the lookout, there’s always an opportunity to profit by acting quickly on these situations and the hype that ensues.
Don’t forget to appreciate the spectacle. This year’s experience might be different without the cheering crowds typical of Royal Ascot, but remember, it’s a unique event on the calendar. If it’s your first year participating, don’t let the excitement get the best of you. You’re likely to see some exceptional results, but remember, if you let your emotions drive your decisions, the market will swiftly reclaim what you’ve earned.