Horse Racing Trading Video
Video 5: 13th March 15 min 15 sec + £18
Profit:
0:03 At the very start of the video I try to Back 500 @ 2.86. After a couple of seconds I realize that I’m not going to get matched at 2.86 so I click and drag my 500 order down 1 tick and release the mouse button to submit Back 500 @ 2.84. I get matched straight away and my position above the other 2 ladders shows that I have Backed 500. I immediately submit Lay 500 @ 2.82 in order to take a small profit and make myself Flat. 2.82 starts to trade and my Lay bet is matched. My position above the other 2 ladders shows that I have zero liability on them and my profit of 10 pounds is displayed above this ladder.
I have 10 pounds profit because I have Backed and Layed the same horse for the same stake but at slightly different prices: My Back 500 @ 2.84 will give me a profit of 920 if this horse wins and my Lay 500 @ 2.82 will cost me 910 if this horse wins, leaving me with 10 pounds leftover. If the horse loses I will make 500 and lose 500 so will not lose anything.
0:54 I try to Lay 500 @ 2.76 when the price is 2.76/2.78 but I don’t get matched and the price moves upwards.
Scratch:
1:10 I click and drag my 500 Lay order at 2.76 up to 2.80 and release the mouse button to submit Lay 500 @ 2.80 when the price is 2.80/2.82. I get matched straight away and my position above the other 2 ladders shows that I have Layed 500. The price moves down to 2.78/2.80 and I decide to Scratch and submit Back 500 @ 2.80. After 10 seconds my order is matched and my position is Flat which can be seen by looking at the amounts above the other 2 ladders.
1:46 I submit Back 500 @ 2.80 but I don’t get matched and the order remains as an unmatched bet.
3:24 I submit Lay 500 @ 2.76 but I don’t get matched and the order remains as an unmatched bet. I now have 2 unmatched bets trying to Lay 500 @ 2.76 and Back 500 @ 2.80.
Scratch:
3:44 My Lay 500 @ 2.76 is matched and the amounts over the other 2 ladders show that I have Layed 500. I immediately Scratch by submitting Back 500 @ 2.76 while the price is still 2.76/2.78 meaning that I get matched instantly and the other 2 ladders now show my position as zero. I did this because the 2.76 bid looks like it will not hold and I believe the price could continue to drop.
Profit:
4:08 I no longer believe that my Back 500 @ 2.80 has a good chance of being matched and the price looks like it might go down further so I click and drag this Back order down to 2.76 and release the mouse button to submit Back @ 2.76 when the price is 2.74/2.76. I get matched quickly and my position above the other 2 ladders shows that I have Backed 500. I immediately submit Lay 500 @ 2.74 as the price is still 2.74/2.76 in order to make a 1 tick profit and to make myself flat. Lay 500 @ 2.74 gets matched quickly making my position Flat and increasing my profit above this ladder to 20 pounds.
Scratch:
4:47 I submit Lay 500 @ 2.70 when the price is 2.68/2.70small, meaning that I get some of my Lay instantly and then get matched on the rest of it. My position above the other 2 ladders shows that I have Layed 500. I think that the price could continue to drop so I immediately submit Back 500 @ 2.70 while the price is still 2.70/2.72, so I get matched instantly, to get out with no loss and making my position flat.
4:55 I submit Back 500 @ 2.70 when the price is 2.70/2.72 which means that I get matched instantly with the Layers who were trying to Lay at 2.70 on the left side of the ladder’s price column. My position above the other 2 ladders shows that I have Backed 500.
Profit:
5:03 I submit Lay 500 @ 2.68 while the price is 2.68/2.70 in order to make a 1 tick profit, which gets matched after a short wait as an unmatched bet. My position above the other 2 ladders shows that I am flat and the amount above this ladder shows that I now have a 30 pound profit on this horse.
5:54 I submit Lay 500 @ 2.70 when the price is 2.70/2.72 but I don’t get matched and it remains as an unmatched bet order.
7:04 I submit Back 500 @ 2.74 when the price is 2.72/2.74 but I don’t get matched and it remains as an unmatched bet order. I now have 2 unmatched bets trying to Lay 500 @ 2.70 and Back 500 @ 2.74.
7:25 My Back 500 @ 2.74 gets matched and my position above the other 2 ladders shows that I have Backed 500. Instead of submitting a Lay order at 2.72 I decide to go for a 2 tick profit because I already have an unmatched Lay order at 2.70 which I believe is in a good position in the queue of money waiting to Lay. I keep the mouse hand hovering over the Lay 2.74 box with the idea of either scratching it quickly if the 2.74 offers trade out or waiting to get matched at 2.70.
Profit:
8:30 My Lay 500 @ 2.70 starts to get matched and then gets matched in full. My position above the other 2 ladders shows that I am flat and the amount above this ladder shows that I now have a 50 pound profit on this horse.
10:45 I submit Lay 500 @ 2.74 when the price is 2.74/2.76 but I don’t get matched and it remains as an unmatched bet order.
11:21 I cancel my unmatched Lay 500 @ 2.74.
11:48 I submit Back 500 @ 2.76 when the price is 2.74/2.76 but I don’t get matched and it remains as an unmatched bet order.
12:08 I cancel my unmatched Back 500 @ 2.76
13:13 I submit Back 500 @ 2.74 when the price is 2.72/2.74 but I don’t get matched and it remains as an unmatched bet order.
14:35 I cancel my unmatched Back 500 @ 2.74
Hedge
14:42 I use the Hedge button to convert my 50 pound profit on this horse IF it wins the race, into a guaranteed profit no matter which horse wins the race. The hedge button does this by dividing your profit at the top of this ladder by the available to Lay odds that are currently trading, and then Laying the result of that calculation on this horse. In this case it divides 50 by 2.68, which is 18.66, and then Lays 18.66 @ 2.68 and you can see that the amounts above all the ladders are now all the same- whichever horse wins I will make 18.66. This is because if this horse goes on to win this race then I will make my original 50 pound profit but will have to pay out 31.35 on the 18.66 Lay bet, leaving me with 18.35 leftover as profit. If the horse loses then I will not realize my 50 pound profit at all but will simply keep the extra 18.66 Lay bet which will be my profit.
If horse wins I make: 50 – (18.66x1.68=31.35) = +18.65
If horse loses I make: Keep 18.66 Lay bet = +18.66
Trading Results
Adam made over £100,000 profit on Betfair from a starting bank of £200.
Check out his complete trading results below:
Daily Trading Results 2003
Daily Trading Results 2004
Daily Trading Results 2005
Overview