Horse Racing Trading Video
Video 6: 10th March 8 min 40 sec + £8
1:15 I submit Back 500 @ 2.40 while the price is 2.38/2.40 and after 5 seconds waiting as an unmatched bet I am matched, which you can see by the amounts above the other 2 ladders showing that I have Backed 500 on this horse.
Profit
1:20 As soon as my Back 500 @ 2.40 is matched I immediately submit Lay 500 @ 2.38 which goes in at the very front of the queue, making the price 2.38/2.40. Straight away a Back order of 1500 @ 2.34 then gets submitted into the market meaning that my Lay 500 @ 2.38 gets matched and the bids at 2.36 and 2.34 also get matched leaving a temporary gap in the price. The other 2 ladders show my position as Flat and my 10 pound profit on this horse is displayed above this ladder.
I have 10 pounds profit because if this horse wins my Back 500 @ 2.40 will payout 1200 but my Lay 500 @ 2.38 will only cost me 1190, leaving me with 10 pounds leftover. If the horse loses I make and lose 500 so will not lose anything.
2:58 I submit Back 500 @ 2.52 while the price is 2.50/2.52 and my order goes to the front of the queue at this price. I get 178 matched at 2.52 which you can see by the amounts displayed above the other 2 ladders. The price then moves down to 2.46/2.50 and then 2.46/2.48 and then 2.44/2.46 leaving the rest of my Back 322 @ 2.52 as an unmatched bet at the very front of the queue. If 2.52 was to trade again the first 322 to be matched at that price would be matched with me.
3:06 I select the NET Stake button which makes my stake size the same as whatever my net position is, in this case 178. I click in the Lay box to the left of the price 2.46 while the price is 2.44/2.46 which Lays 178 @ 2.46 which is matched instantly. The NET button now displays a value of zero because my net position is now zero, which you can see by the amounts above the other 2 ladders. My profit displayed above this ladder now shows as 20.68
4:46 The price moves down to 2.34/2.36 and I decide to cancel my unmatched Back 322 @ 2.52 and I select the 500 Stake button again.
Loss
5:08 I submit Lay 500 @ 2.32 while the price is 2.32/2.34 and I then get matched straight away as the price dips to 2.30/2.32. I submit Back 500 @ 2.34 while the price is still 2.30/2.32 expecting that it will go back up but the price drops again to 2.28/2.30 so I immediately submit another Back 500 @ 2.30 and cancel the Back 500 @ 2.34. The Back 500 @ 2.30 is unmatched so in my haste to get out of a losing position I then submit another Back 500 @ 2.28 just as the Back 500 @ 2.30 is matched. This means that instead of being flat which is what I wanted, I have now Backed 500 which you can see by the amounts above the other 2 ladders.
Scratch
5:20 I submit Lay 500 @ 2.28 while the price is 2.28/2.30 to try and Scratch my last trade. It goes in as an unmatched bet but gets matched a few seconds later. My profit above this ladder now shows as only 10.68 because I lost a tick when I Layed 500 @ 2.32 and then Backed 500 @ 2.30.
5:29 I submit Back 500 @ 2.28 while the price is 2.24/2.28 which remains as an unmatched bet.
5:53 My Back 500 @ 2.28 starts to get part matched so I submit Lay 500 @ 2.26 in the expectation that the Back 500 @ 2.28 will get fully matched. The Lay 500 @ 2.26 is very near the front of the queue and starts to get part matched and then fully matched before the Back 500 @ 2.28 has been matched in full, which is then fully matched a couple of seconds later. The amount above this ladder shows my profit as 20.68 again.
6:52 I submit Back 500 @ 2.36 while the price is 2.30/2.32 because the 2.36 price cell has no offers in it so I know I will have a good queue position if the price goes up to 2.36.
Scratch
7:36 My Back 500 @ 2.36 gets matched but there is over 6000 on the 2.34 bid and I think that the price will continue to rise so I submit Lay 500 @ 2.36 while the price is still 2.34/2.36 to Scratch and it is matched instantly. The price then immediately rises to 2.36/2.38 and up to 2.42/2.44 a few seconds later.
8:12 I click on the Hedge button to convert my potential 20.68 profit if the horse wins, into a guaranteed profit of 8.69 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 20.68 by 2.38, which is 8.69, and then Lays 8.69 @ 2.38. Now if the horse wins the race I will make less than 20.68 because I will have to pay out 11.99 ( 8.69 x 1.38 = 11.99) on this extra Lay bet of 8.69 that I just took on this horse. But, if this horse loses, I won’t make my 20.68 pound profit but I get to keep that extra Lay bet of 8.69 which will be my profit.
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