So Betfair scalping is it as easy as the professionals make it look?
If you are not familiar with Betfair scalping I suggest you take a quick look on youtube and view some of the videos related to this.
Basically when we are scalping on Betfair we are looking to get a back/lay matched and then get a bet matched on the opposite side of the book in order to make a profit.
So if we had a back bet matched at 1.23 we would want a lay bet matched at 1.22. This would then give a profit of around 0.8% of our stake on all outcomes.
Betfair Horse Trading Strategy
In this part of the article I am going to write about a strategy that I use very often in the Horse Racing markets on Betfair. It can be used as a short term method like scalping or as I prefer a slightly longer term strategy.
This horse trading strategy exploits the way the odds increment are in Betfair. For example from 1.01-2.00 the odds move in increments of 0.01 however after 2.0 they move in increments of 0.02. At 3.0 they start to move in increments of 0.05 and then at 4.0 in increments of 0.1. This continues as the odds increase.
Here is an example using the Geeks Toy software. In this example I will be using a £10 stake.
As you can see the horse in the first ladder is trading just above 4.0 it is trading at 4.2. Ideally I would like to lay at 4.0 however in this instance I put a lay bet into the market at 4.1 and use 4.0 as my exit.
You can see from this picture of the Geeks Toy software that the profit to be made from each each tick moving upwards is not equal to the loss made if the price moves downwards.
You can see from the prices I have highlighted in the above image that if we lose a 1 tick the loss is -0.25p, 2 ticks lost -0.38p, 3 ticks lost -0.51p.
Now looking at what happens if the price moves upwards in our favour, 1 tick +0.24p, 2 ticks +0.47p, 3 ticks +0.68p.
You can see then from this example that just by positioning ourselves in favorable price points in the market we can gain an edge trading in the Betfair markets.
(In order to scalp successfully on Betfair you will need to use some software that allows quick entries and exits into the markets. I currently use Geeks toy having found this to be the quickest and more efficient software available.)
Betfair Scalping: Some Tips
1. Keep disciplined
– If you are using this technique then the key is not let a trade run too far against you. The major benefit of this strategy is the profit from winning 2 or 3 ticks outweighs the same amount lost from 2 or 3 ticks.
2. Try to find stable markets
– Try to use this technique when the markets has a good amount of liquidity. I would suggest at least 15-20k and there is money matched for the horse you are trading.
3. Start small
– Like all trading techniques it is important not to jump in straight away. Learn the markets you are trading start with small stakes and build your confidence in your strategy.
Useful resources and links