Frequently Asked Questions about Betfair Trading

I've received hundreds of emails over the past few years from beginners and experienced traders asking for tips and advice. I often find myself repeating the same answers so this section will hopefully give you all the answers you are looking for without having to send an email. However, if you have a detailed specific question, please feel free to contact me and i will add it to this section if it is worth sharing.

As these answers are similar to what I've sent in emails in the past, they will contain a lot of answers that are specific to the strategies that I am using and my experiences. Here are some of the answers (shortened) that I have sent out in the past:

General Questions

1. Can you really make serious money by Trading on Betfair?

This is probably one of the most commonly asked questions that I receive. The answer is it's possible to make a full time income from trading but it will take a lot of dedication and hard work. You will need to be seriously determined and also be able to develop and refine your strategies. There are profitable full time and part time traders on Betfair but this does not mean everyone can be successful. A good grasp of money management is essential.

2. How do I get started with trading?

The best way to get started is by reading and watching videos about the various types of markets and learning how they work. Find one that suits your trading style and personality. Start small before scaling your way up and expect to do a lot of trial and error before you develop a successful strategy. Get yourself setup with some software such as Bet Angel and practice using the ladder interface.

3. How much capital do I need to start trading?

You can start with as much or as little as you can afford to lose. For example, some people start with £100 and trade with £2 stakes. If you have no experience of trading, you should probably paper trade and make sure you have a good strategy before risking your money. Nowadays, there are Betfair trading software which have training modes and virtual accounts which make learning much more easier and risk free.

If you are planning to trade with real money bankroll managment is essential to success. Not only does it help you to manage the losing streaks but it will also minimise the mistakes. When I first started, I tested pre-race horse racing markets with £2 stakes until I got more confident.

4. I make around £50 per day from trading, how do I get better?

Learn from your mistakes and find ways to optimise your strategy. I would recommend keeping a trading diary and writing your comments on each race / trade so that you can identify common mistakes. Some traders that I know video their trading sessions so that they can review them at the end of the day.

5. How do I know if I have a successful strategy for the long term?

If you have a straregy and you are wondering if it will be successful in the long term, one of the easiest ways to work out if it will successful is to calculate how long it will take you to recoup a loss. If it looks like you need too many trades to recoup a loss, it probably means you will lose in the long term. Here is an example:

£1000 bankroll
£50 profit per trade
-£40 stop loss
Success rate 80%

= in 10 trades you will gain £400 (8 x £50) and lose £80 (2 x -£40) giving an average total profit of £320 per 10 trades.

6. What is your trading setup?

My trading setup is actually quite simple and I don't use any fancy equipment. I trade on a laptop and the only thing I run on it is trading software. I will also have the TV on with satellite for visuals on sports.

Horse Racing Questions

1. What is a typical day of a horse racing trader?

I don't think I can describe a typical day because no one uses the exact same strategy and they will have different rules. Personally, I trade pre-race and in-running so my day will begin by taking a look at the race card for the day and then schedule my day according to the race times. I will usually take a break in between races or finish up early. In the summer months, I'm probably going to be trading from 2pm to around 5pm and then some evening races. I look at the whole trading day as three sessions - early, mid and finish. If there is another sport on such as Tennis or Snooker which I prefer, I may trade those instead.

2. What is the best way to predict the movement of prices pre-race (around 10 minutes before the race begins)?

I use technical analysis (chart reading), volume and weight of money as indicators. I will scan for opportunities by looking for spikes in volume and then use technical analysis and weight of money to confirm the trend. I'm not sure if it's the best way to predict prices but it has been working for me.

Football Trading Questions

1. I lay the draw before the match begins, what happens when there is no goal scored?

The match will end in a draw which means you will lose your bet. You will need to have a exit strategy or another way to minimise risk in order to protect your bankroll.

2. What are some ways to exit out of a football match if no-one scores?

Assuming you are laying the draw. you could exit out at a pre defined time in the match for a smaller equalised loss, place an insurance bet on the 0-0 scoreline before the match or wait it out for a potentially higher loss or a profit.

If you are trading another football market such as the over/under 2.5 goals, you could back the draw with a small amount as an insurance bet. This means you could trade out for a profit and would also have all the draw scorelines covered as a bonus i.e. 0-0, 1-1, 2-2, 3-3, etc.

Betfair Software Questions

1. I'm not sure whether or not to get trading software, is it essential?

If you are doing any kind of short term trading, I would recommend using trading software and would even go as far as saying that it essential. Without one-click betting and other features such as automatic hedging, you are most likely going to be at a significant disadvantage.

2. Which Betfair trading software should I use?

There are many trading applications available but the one I recommend is Bet Angel. They have been around the longest and are very reliable.