Posts Tagged ten pound trader
Ten pound trader – First week
Posted by Peter Webb in Bet Angel on October 9th, 2009
I now realise I have two mistakes in the last week. First, last night I made a classic error in racking up charges, quite easy when trying to trade on two accounts. Second, over the last week my stake is rising too fast in line with my bank. Several Bet Angel users had spotted this already, but it only really sunk in for me when I kept getting ‘account exposure’ errors trading at higher odds! Ho hum, we are all human. I concede to those that wrote in, that it was an error on my behalf.
In my day to day activity there is effectively no upper limit on my liability or exposure so I rarely come across this problem. But by working with lower values, this is going obviously going to be more of an issue. The solution is quite simple, you can start trading with liability stakes or you increase your stakes inline with your bank, which is the most sensible route. If I don’t increase stakes inline with my bank size I will find myself trading at £100 stakes with a £200 bank, which isn’t going to work.
Over the week TPT managed to go from £100 to £120 (excluding charges), which is a 20% gain. But in hindsight, which is always a wonderful thing, it would seem to make sense to start again. I am going to reset the account to £100, but this time increase stakes by the % gain in bank size and represent future gains as a % on bank rather than on stake. Compounding will be slower but I won’t have the issues as described above.
Therefore, Ten pound trader mark two will start up today at £100, I think doing weekly update may be more interesting that daily also? I am considering a mark three as well, but it will take some time to set up, so that can come later.
Ten pound trader – Day five
Posted by Peter Webb in Bet Angel on October 7th, 2009
As predicted Monday was a tough one, but I failed to predict that I would actually try to trade it with TPT. What a fool, I shouldn’t have bothered as I initially indicated. TPT made only a tiny amount on Monday but it was still 5% of stake. Yesterday was a bit better and boosted the stake to up to £21.58 overall for today a gain of 15%.
So, in five days we have gone from a stake of £10 to a stake of £20. If we factor in a growth of 10% per day on average we should be able to get our stake up to £50 in around ten days time. So far, we haven’t really had any blockbuster days. I think I started this at the wrong time of the year. It’s a lot tougher out there at the moment.
At smaller levels the gains are tiny so far, an average of just 11p per race at the moment, but so are the losses! As we compound up, we should be able to start accelerating that amount. This is exactly how I started many years ago. When your confidence is fragile, slowly building your stake up should slowly lift your profits up without putting yourself under two much pressure. If you get a bad result, that doesn’t hurt as much either. Pretty graph attached!
Ten pound trader – Day two
Posted by Peter Webb in Bet Angel on October 4th, 2009
Using maximum stakes of £11.76, ten pound trader managed to make £3.73 yesterday. That’s represents a 31.72% return on stake size on the day. Sounds impressive! Well it is, but it isn’t, but I hope my point will come across over the course of this post.
If I asked if you could return the same percentage on the day, you would probably be hesitant. But if I asked you if you could make 11p a race you would probably have a go. The fact is that in this case, both are one and the same thing. The reason for the higher return today is that I simply did more races. Such is the wonder of instant settlement and short term events on betting exchanges that its possible to recycle the money through the market very quickly, which produces these sorts of results.
Early on Saturday morning I was doing a dry run for the Melbourne cup, so ten pound trader joined me for the Aussie racing and the UK racing. In total I did 36 races on the day averaging just over 10p a race. If you look at the prior day I did 17 races, averaging a similar amount per race. So you could argue I did worse today as I had a larger stake size to work with.
With yesterdays result added in, the maximum stake for today will be £15.49. This is now more than 50% higher than we started with. Despite only making an average of just over 10p per race we are already moving up the stakes nicely. I will be active today as we have the Prix De L’arc. I’ll see if I can get get ten pound traders bank up a little but he will probably have a rest on Monday and Tuesday.
Steady start for ten pound trader
Posted by Peter Webb in Bet Angel on October 3rd, 2009
OK, £1.76 may not seem a great deal of money, but remember we are starting with a trading stake of only £10. This means that on day one we achieved a return on our stake of 17.60%. We can now raise our stakes to the grand sum of £11.76 for day two. I have included the full P&L so you can see how we made our £1.76. Lots of little amounts, but they eventually all add up to our final profit and that is the essentially the essense of trading.
I’ve also included my total for the day, you can see why I was keen to do this as an aside to my main trading! It also shows how, when you get more comfortable with taking more risk, the results can get proportionally much higher. Yesterday was a reasonable day, the only downer being the lack of decent field sizes. The Newmarket card ended with a 4, 3 then 2 runner race. For a supposed quality meeting it was very dissapointing, if there was one more race you wondered whether they may come out with a 1 runner race!
Ten pound trader – Day one
Posted by Peter Webb in Bet Angel on October 2nd, 2009
After a great September I had considered posting up the P&L for last month and also the last three months in total as they are absolute stonkers. But as I went to prepare the image for upload I paused for thought.
I guess they show what is possible, but having been around for so long you would suspect that I should be able to pull in something special, especially with bigger amounts of capital to hand. So I had another idea, what would happen if I took my bank right back to something that somebody starting out would have? I think this may be more interesting to a lot of blog followers?
So, today I funded a new account with £100 and started trading at £10 stake sizes. Of course, I can’t forgo my normal trading so Mr Ten Pound trader is going to have to run alongside my existing activity. It’s going to be quite a task to manage both so I am expecting the odd mess up and bad day but then, if I was starting out from new, that would probably be a similar story.
I know I am very experienced and don’t want to set false expectations, but I do believe that with the right approach it’s perfectly possible to squeeze something out of the market. I also believe that it’s definitely easier to use smaller stakes than big ones. With big stakes you have to gamble on getting filled, that’s not a problem using tiny stakes.
Each day, in line with sensible money management strategies, I will increment or decrement my stake by the prior days profit (or loss!). I’ll take Mr Ten Pound trader up to a notional value and then stop. I could go on forever but I just want to show that even from small amounts your bank can grow quite quickly. When finished I’m going to donate the profits to the injured jockey’s fund.
It could be a miserable failure and prove impossible to trade two accounts at once, but here goes anyway!