Horse Race Trading: A Simple Betfair Horse Trading Strategy
This tutorial will take you through the steps of
on Betfair. There are many ways to trade on horse races but I'm going to show you a method that is extremely easy and does not require any special software because it is a long term trade (speed is not essential). Here are the steps that I use for this strategy:
Step 1: The first thing we need to do is identify races which show opportunities. In this case, an opportunity is where the horse racing chart looks like it's going one way. The best time to do this is at 11am in the morning as this is where some money has been fed into the market and trends have not fully developed. Here is an example of a chart (14:20 Goodwood - Depraux) that looks like it's going one way:
Can you guess where the odds on this horse is heading? This chart looks as if the price will go down over time and we can identify this because the graph trend indicates that the price has been going down for the past few hours from 5.9 to 4.4. Overall, I'd say I have a 70% chance of winning a trade on this horse. Some bad points are that the price opened at 5 but shot up to 9 and the chart is not steep which usually means it will not lower very quickly. The good points are that it's been lowering for the past few hours and will probably continue to lower. There is also resistance at 5.4 and 6.0 which can act as a stop and assess point for us if needed. This is what the odds looked like at 11am:
Step 2: After we identify a race we need to assess the likeliness that this trade will be a winner. Looking at strength and resistance points and the trend of the graph, you should be able to tell how strong a trade is. Most of the races you come across will not have clear trends and if this happens just move on to the next race. Typically, you should be able to find 5 or 6 of these opportunities per day. In this case, I felt the horse, Depraux, showed good signs of becoming a winning trade.
Step 3: To limit liabilities, I prefer to only search for backing opportunites. This means that the graph looks to be lowering and I will place a back bet then wait for the odds to lower and then lay to equalise a profit. In this instance, I did just that and managed to secure a profit on Depraux at around 1.45pm:
From the screenshot above we can see that I've equalised a profit of £9.50 on the field because the odds have dropped to 3.95 from 4.4. This trading method is remarkably simple and all it takes is some chart reading ability. Normally, I will check the charts at 11am and then return a few hours later before the start of the race to equalise the bets. To learn more about a similar method in more detail, check out this Betfair Trading Course.