1. It would seem (for people starting to think about this early on in their account life) that a decent way to minimise the effects of the PC long term would be to churn from the start, and on a manageable weekly basis so that you can scale accordingly and always maintain your commission amount. If you wait til you are in a large overall profit, you will be looking at quite a large amount of churning to make up the deficit. If managed this way, then the level of churning need not be so high as to need automation as it could potentially be done in a few relatively large bets on some weekly games. For example:
You win £1000 this week, have paid £50 in comms through your trading and have a bank of £10000; you need to make up a further £150 in comms through churning, meaning you need 1 win of £3000 (assuming 5% comm and ignoring implied comm for the sake of simplicity), or 2 wins of £1500, or 5 wins of £600 etc. You easily have the bank to do this, and don't need to spend too much effort doing it on loads of markets in a week. Doing this weekly and scaling accordingly will mean that you maintain your commission level. Even if you got to the point of earning 5 figures a month, this would be maintainable without too much work, using say big football matches on the weekend. Of course, you could automate this if you really wanted.
2. It would also seem that you are better off shooting to generate all your commission through churning, rather than waiting for BF to make up the difference as PC because all the calculations are based off of generated commission, not total charges (which is where the PC would be included). So, if total generated commission was 5%, I would pay 15% PC, but my generated comm would still only be 5%. If my total generated commission was 20% (through churning), I would pay no PC, generated comm would be 20%, and I would have the same net profit at the end.
3. You are also better off churning up to 20% rather than having BF take PC up to 20% because you will earn your baseline commission discount much quicker (PC deductions do not seem to be used in calculating your discount as it is based on generated commission, not total charges).
Then, when (or IF!) one got to the higher rates of PC, one would already be sitting at the lower 40% band as your commissions will have consistently been at 20%, and you should have accumulated enough BF points to get into the 2% baseline commission bracket that Euler was referring to. At that point, you could scale back churning to maintain just over 10% to stay at the 40% level and receive the rebate. This would put you at about 27% total commission in the higher bracket, taking into account the rebate.
How much of that did I get completely wrong?!
