Trading horse races has long been a way for enlightened betting enthusiasts to make profits on Betfair. Most horse race trading strategies on Betfair mean that the trader needs to learn a load of stuff about race courses, trainers, horses and jockeys. The hardest thing with trading horse races on Betfair is having to predict which direction a horse’s odds will move. It’s refreshing to have another option when it comes to trading horse races on Betfair where you need to know nothing about the horse, the race, and jockey… zilch, nada, nothing.
“I’m going to say something which seems paradoxical in some ways – but I became a good scalp trader when I realised that you can’t really predict which way the price of a horse will go.”
A quote from Wayne Bailey a successful Betfair scalping trader.
Scalp trading is pure trading. The scalp trader does not need to predict which way the market will go. It’s a numbers game. It’s all about getting more profitable scalps than unprofitable scalps. On Betfair there is no shortage of scalping opportunities. The trick is to find the best scalping strategies to repeat in order to profit from movement in the odds.
UK horse racing on Betfair is most often used for scalping. There is lots of money entering the market and the odds move around enough to make a profit. The principle of scalping is simple. Back at a high price and lay at a lower price and vice versa. Here is a simple example. Say there’s a horse called (Fuzzy duck) with odds of 4.4. A back bet of £100 is made. If they odds move lower than 4.4 it is possible to profit. If a lay bet was placed at odds of 4 using £100 that would secure a profit of £40.
If the horse wins the back bet pays £340 but the lay bet would have cost £300 giving a £40 profit if the horse wins or nothing if it loses. A risk free bet. What a trader will do is hedge the risk free bet. A trader wouldn’t be happy with a profit only of the horse wins. In order to profit if the horse doesn’t win the trader greens up. A green book means a profitable book and is a beautiful thing :).
The disadvantage of scalping is that if the price moves against you the book turns red. Not a pretty sight because it means that the trade will be exited for a loss. The skill is making more winning bets than losing ones. There will always be losing bets. This is a fact of life. There is no point trying to second guess the markets. A better approach is to use tried and tested Betfair scalping techniques. The rest of this article explains two Scalping on Betfair trading techniques.