1/2 Scalping?

[Raven44]

So I've a question,

Lets say I back a selection 5 mins out at the top of the market (eg. best price of 12) and then just before the race, the price of that selection drops to 8, the <4> difference is little but with the right stakes could be a potential easy trade right?

From my understanding, scalping is backing at a high price and laying at a lower price and creating profit , I am suggesting that we cut out the lay bet entirely though. It may also work by laying at a higher price and taking advantage of the market conditions nearer to the close of the trade.

I'm sure this strategy exists but am not sure of the name, anyway, if so can it be automated?

Thank you kindly.

[Anbell]

So I've a question,

Lets say I back a selection 5 mins out at the top of the market (eg. best price of 12) and then just before the race, the price of that selection drops to 8, the <4> difference is little but with the right stakes could be a potential easy trade right?

The difference is a lot! You would make a lot of $ out of this trade. 'Easy' with the right trade/set-up.

[Raven44]

Hi,
The numbers are really for reference, the idea is to back at a higher price then cash out or green up at a lower one, I just wondered if there was a name for this type of trade..

[TraderFred]

I’d say that your example was more of a swing trade.

Scalping it usually laying both sides of the market spread, in your example maybe backing at 12 and laying at 11.5. That would be defined as a scalp. And the idea is to get in and do it as many times as possible before the price moves or the race starts. There are opportunities to do this on every race at every price level on every runner, so you can do lots and lots of scalps to build up profits.

Swing trades tend to be less frequent. It is possible to see a runner go from to 12 to 8 back to 12 and then into 8 again. Though catching all those swings would be difficult. They are less frequent, though if you can catch one, far more rewarding.

Though obviously a swing trade is harder to catch than a scalp. You have to find the right balance of what you find easiest and what suits you best.

[Derek27]

Scalping it usually laying both sides of the market spread, in your example maybe backing at 12 and laying at 11.5. That would be defined as a scalp.

Is scalping taking a one or two tick profit, or would you call trading the ends of the spread in a weak market, for example backing at 2.9 and laying at 2.2 with no orders in between - does that count as scalping?

[TraderFred]

Sure ,derek27 , why not.

Let’s call that a scalp too.

[Raven44]

Ah, so the possibility of a wider configuration might be the case. It's knowing how to green up those trades with a bot. If only there were a command

[Emmson]

Scalping it usually laying both sides of the market spread, in your example maybe backing at 12 and laying at 11.5. That would be defined as a scalp.

Is scalping taking a one or two tick profit, or would you call trading the ends of the spread in a weak market, for example backing at 2.9 and laying at 2.2 with no orders in between - does that count as scalping?

1 or 2 ticks is a scalp to me and occasionally you can snatch more through luck, if I enter looking for 3 or more then I don't view that as a scalp even if its with £2 in a barren market. I still do more than my share of £2 trading

[Derek27]

Scalping literally means shaving someone's hair and skin off - one tick can be the hair, the second tick can be the skin.

But if there's nothing between 4.5 and 5.5 and you trade the ends of the spread, you could call it scalping a thick-skinned animal, like a Rhino.

[ShaunWhite]

It's knowing how to green up those trades with a bot. If only there were a command

There isn't a command to do it, there's two, Close Trade on Selection with Greening and if you want to do it across multiple selections simultaneously there's also Green All Selections.

https://www.betangel.com/user-guide/rul ... 3D&mw=Mzcy

[ShaunWhite]

"Scalping" is a directionless, usually a short duration trade and without a specific view on where the market will move. Often both sides of the trade will be offered at the same time. The idea is to trade across the spread between the current best back and lay prices however big that might be. They're most suited to stable markets.

"Swing" trading is directional, usually longer duration where a market movement is anticipated and one side would be placed and if filled, the other side is placed at your discretion, hopefully taking as many ticks as possible. These are more effective in volatile or ideally, trending markets.

(there's also directional scalping but that's tmi)

The most experienced traders probably wouldn't characterise their trades as being strictly one or the other, they'd adjust their position several times on an ad hoc basis, having multiple back bets and/or multiple lay bets in no specific sequence, and then only closing (aka hedging) any remain position when the market is about to close or they no longer have an opinion on which way the market will move. If you watch Peter's pre-race videos you'll see him use that style manully a lot to devistaing effect but you can obviously automate that style of trading too. The advantage is that you can trade almost every minute of every market without having to wait for specfic setups and therefore increase your turnover. The PL on any given market might be made up of a couple of scalps and swings or even scalps that are half closed while the remainder is left to swing.

All that said, the market doesn't give a damn about what you intend to do and a scalp can become a swing or visa versa. All you really need to know is that there's two type of trades, winners and losers.

Like a lot of sports trading stuff the terminology has been borrowed from trading financials...
https://www.investopedia.com/terms/s/scalping.asp
https://www.investopedia.com/terms/s/swingtrading.asp