Basic Trading Strategy

The basic trading strategy of traditional betting is the search value ( “value”). The bettor, thanks to their knowledge and experience, learn to identify events in which a team has more chances of winning than those reflected by the quota. If a bettor believes the odds of Barcelona to win a particular game exceed 50% and the house pays this result to a share greater than , we have a “value”. In the more high – cited example is the fee with regard to, the higher the “value” of the bet. The success of the bettor depends on how refined are their own estimates, but often these estimates are intuitive. Thanks to the popularization of betting against, have emerged in recent alternative techniques years when betting, own the business world or even the securities industry, which the gaming world itself. The “trader” does not seek quotas “value” but shares whose market price will fluctuate enough to guarantee profits. A useful analogy is the stock market. An entrepreneur goes to a store to purchase stocks a lot of products at low prices, hoping to sell later each batch unit at an advantageous price. The higher the selling price compared to thepurchase price, the employer obtains higher profits. Note that the business strategy is not to produce or manufacture a product, but the sale of it.This technique is known as “trading”. The arrival of the houses to exchange gambling world makes it possible to implement systems “trading” sports betting. The entrepreneur who buys and sells the same product acts in a manner analogous to a gambler who bet “for” and “against” the same result. Employer benefits depend on the price at which to sell their product achieves greater than the price at which you bought it .Similarly, the benefit bettor in a trading operation depends on the share of the Bet greater than the fee bet against.

Bet on high odds against low fees

Trading operation is based on getting a “safe bet”, that is a bet that, whatever the outcome of the event, never to lose. The necessary condition for this is that the share of the Bet exceeds the quota bet against. The phrase that summarizes basic trading strategy is “high back and lay low.”

Example 3 Football match Barcelona – Athletic Bilbao. Following in the footsteps of Example 1, we have bet 10 € for Barcelona’s victory with odds 1.45. The match kicks and FC Barcelona team is ahead on the scoreboard. Then quotas for Barca down, it is evident that your odds of winning the match are increased by having one goal lead. At the same time lowering quotas “in favor” of Barcelona, there is also a proportional drop quotas against. If the fee initially was in favor share and 1.45 against 1.50, after the goal both drop to values of 1.25 and 1.20 respectively.Then the right conditions are given for a trading operation, as against 1.20 share is less than the share for 1.45 of which already had wagered 10 €. Other 10 € bet against Barca win with odds 1.20.

Table 4
basic trading strategy. Bet “for” with high fees and “against” with low fees

Barcelona wins Barcelona does not win
Bet 1 (10 € for Barcelona @ 1.45) Profit = 10 x 0.45 = + € 4.50 Losses = -10 €
Bet 2 (10 € against Barcelona @ 1,20) Loss = 10 x 0.20 = -2 € Profit = 10 €

** When making bets in a house swap, the bettor will have to deduct from the proceeds appropriate commissions, usually around 5%. Table 4 shows the balance of the two bets. If Barcelona win, bet sum for us € 4.50 and bet against left for us 2 €, thus leaving a net profit of € 2.50. If that Barcelona does not win (if the match ends in a draw or victory Athletic), the Bet remains for us 10 € and bet against sum us another 10 €, therefore neither gain nor lose. The advantage operation of trading is that you can never lose, no fear that the outcome of the match turns against us and we end up losing 10 € initially wagered. in Example 1, the same amount for bet and Against. Thus it wins € 2.5 in one case and exit without losses or gains in another. An alternative way to make trading is betting against a greater amount wagered in favor. It is thus achieved profit in both cases.

Example 4 identical situation to Example 3. We bet 10 € in favor of Barcelona with odds 1.45 and lay odds down to 1.20. This time we want to ensure benefits whether Barca win or not. So we have to determine how much to invest in our second bet by the formula: (Number Bet 2) = (Number Bet 1) ∙ (Cuota1 / Cuota2) = 10 ∙ (1.45 / 1.20) = 12.08 then 12.08 € bet against Barcelona’s win with odds 1.20.

Table 5
Basic Strategy trading. Bet “for” with high fees and “against” with low fees

Barcelona wins Barcelona does not win
Bet 1 (10 € for Barcelona @ 1.45) Profit = 10 x 0.45 = + € 4.50 Losses = -10 €
Bet 2 (12,08 € against
Barcelona @ 1,20)
Losses = 12.08 x 0.20 = 2,416 € Profit = 12.08 €

** When making bets in a house swap, the bettor will have to deduct from the proceeds appropriate commissions, usually around 5%. Table 5 shows the balance of the two bets. If Barcelona win, bet sum for us € 4.50 and remains for us to bet against 2.416 €, thus leaving a net profit of 2.084 €. If that Barcelona does not win (if the match ends in a draw or victory Athletic), the bet remains for us for 10 € and bet against us 12.08 € sum, therefore, won € 2.084.

Limiting losses

In the preceding examples, quotas evolve in a favorable direction and it becomes possible to ensure profits whatever the outcome of the event.However, when quotas evolve adverse sense, it’s time to take losses and get down to work to minimize the amount lost.

Example 5 ‘ve bet 10 € in favor of Barcelona with odds 1.45. Begins the match, but the FC Barcelona team not only not ahead on the scoreboard but it fits a goal against. Then quotas for Barca go up, because your chances of winning the game are reduced by having a goal down. At the same time they raise quotas “in favor” of Barcelona, a proportional increase of fees against occurs. If the fee initially was in favor share and 1.45 against 1.50, after the goal both up to the values of 1.55 and 1.60 respectively. So not the right conditions for a trading operation that ensures benefits. But since the party reflects an adverse marker, it is possible to make a second bet as much as possible to minimize future losses. Other 10 € bet against Barcelona with odds 1.60.

Table 6
basic trading strategy (II). Limiting the losses.

Barcelona wins Barcelona does not win
Bet 1
(10 € for Barcelona @ 1.45)
Profit = 10 x 0.45 = + € 4.50 Losses = -10 €
Bet 2
(10 € against Celona Bar @ 1.60)
Losses = 10 x 0.60 = 6 € Profit = 10 €

** When making bets in a house swap, the bettor will have to deduct from the proceeds appropriate commissions, usually around 5%. Table 6 shows the balance of the two bets. If Barcelona win, bet sum for us € 4.50 and subtracts bet against us 6 €, thus leaving a net loss of € 1.50. If that Barcelona does not win (if the match ends in a draw or victory Athletic), the Bet remains for us 10 € and bet against sum us another 10 €, therefore neither win nor lose. Although the result of the trading operation is negative, it has the advantage that limit losses to a maximum of € 1.50 and we ensure that we will never lose the 10 € of the total initial bet. in Example 5, bet the same amount in favor and against. This way it is possible to limit losses to 1.5 € in one case and exit without losses or gains in another. An alternative way to make trading is betting against a lower amount wagered in favor, handing losses between the two results.

Example 6 ‘ve bet 10 € in favor of Barcelona with odds 1.45 and quotas against up to 1.60. This time, we want to minimize losses if the club wins both or not. So we have to determine how much to invest in our second bet by the formula: (Number Bet 2) = (Number Bet 1) ∙ (Cuota1 / Cuota2) = 10 ∙ (1.45 / 1.60) = 9.0625 then 12.08 € bet against Barcelona’s win with odds 1.20.

Table 7
basic trading strategy (II). Limiting the losses.

Barcelona wins Barcelona does not win
Bet 1
(10 € for Barcelona @ 1.45)
Profit = 10 x 0.45 = + € 4.50 Losses = – 10 €
Bet 2
(€ 9.0625 against Barcelona @ 1.60)
Losses = 9.0625 x 0.60 = € 5.4375 Profit = 9.0625 €

** When making bets in a house swap, the bettor will have to deduct from the proceeds appropriate commissions, usually around 5%. Table 7 shows the balance of the two bets. If Barcelona wins, bet sum for us and bet € 4.50 against € 5.4375 remains for us, being, therefore, a net loss of € 0.9375. If that Barcelona does not win (if the match ends in a draw or victory Athletic), the bet remains for us for 10 € and bet against us sum € 9.0625, therefore we lose 0.9375 € .

Combining different types of houses

The trading is specifically associated with the betting exchange houses. However, higher performance can be obtained if several exchange houses and several traditional houses are used simultaneously. The operation for the back can be done in any type of home, while the operation against the lay, can only take place in a house exchange. Then there are three possibilities:

  • Perform back and lay in the same house exchange.
  • Perform back in a home exchange and lay in another house of different exchange.
  • Perform back in a traditional house and lay in a house exchange

The key is simply to search the house, whether traditional or exchange that offers tuition for higher and house share exchange offer against lower. When looking for the best odds are very useful the comparative quota .

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