MONEY MANAGMENT

A place to discuss anything.
Post Reply
Steve17
Posts: 37
Joined: Thu Jan 11, 2018 1:19 pm

My plan is to scalp the market small stakes of £10 pounds with a starting balance of £100 adding £100 each month and upping my stake by £10 each month
My strike rate is about 80% wining anything between £0.2p and £2.00

I have a green up automation so oi can never go in play

Can I get some feedback on this plan please
User avatar
ShaunWhite
Posts: 9731
Joined: Sat Sep 03, 2016 3:42 am

Are you talking about UK horseracing markets?
Part time or full time?
Does the plan account for fewer races over winter?

.... All of those questions are secondary to the question you need to ask yourself.. . "Do I have a track record of profitability that gives me assurance that those projections are realistic?"

I don't know how many profitable months you've had so far but I think you should perhaps try and execute your plan for a month and then reassess once you have a month of stats to validate your estimates.
User avatar
SeaHorseRacing
Posts: 2893
Joined: Fri May 20, 2016 7:06 pm

My advise to you is is to adapt your stakes depending on the price you trade.

For example. A £10 trade on a 2.00 horse will always give you a smaller profit than a £10 trade on horse priced 5.0.

The increments change depenind on the odds.

Change your stake option to stake by %. So your always staking evenly.. meaning each tick will always represent the same loss or profit.

My only advice, if your looking to increase stakes significantly eventually that the scalping will become different to the stakes your using now.

I have bet on horses since I left school, but only learned this since I started trading, and it amazes me how so called professionals Stake this way.

If you had an edge at betting but stakes £10 on every selection, and you stake regualry from horses priced Evens all the way to 16/1.
What would be the point in staking any horse priced lower then 5/1? Your 16/1 winners are always going to pay you more then your other winner will make. This is taking into consideration that you don’t know a strike rate etc.

When trading, try and always win and lose the same amount.. it just mean if you want a minimum of £10 a trade.. on the bigger prices your have to trade using the minum stakes like £2.

Then your hopefully your get to a problem we’re your staking only what the market can give you.

Good luck.
User avatar
SeaHorseRacing
Posts: 2893
Joined: Fri May 20, 2016 7:06 pm

Whilst i thought about it.

From my personal experiences. What I found best as way to start increasing my stakes was to do such.

Divide your tick stake by your balance. For example.
If I am going to stake by % or tick size I set that up by a percentage of my bank.

Whatever my bank was, i divided by 5.

So if I was going to stake with a £1 tick size my bank would need to be £500.
Then each and every week I would total my entire balance and divide again by 5.

So if I made £50 profit at the end of the week. I would divide £550 by 5 which equals £112.50. So if my tick size was £1. My tick size now will be around £1.12.

Even if you make some losses you can start the following week with a smaller tick size.
This is a really good way to learn to manage the entire balance as your not increasing stakes when you shouldn’t and it’s teaching you good discipline.

This way rather then adding £100 (which is doubling your stake each month)
Every week your slowly increasing your stakes. Without taking huge jumps.. other wise when you get to months 3/4/5 that jump from £10trades to £50 trades will feel very different very quickly.
Getting £50 through a horse price 10s on some markets is too much money and even though it’s a still a small amount, one day your be flying and the day you increase your notice how much harder it is..

Maybe think about approaching trades in batches too.
I never go full Stake on any trade.

When i am ready to trade, I will now have a rough idea how much I want to stake but i also have a rough idea how many batches i will put in.

For example: if I am really confident on a selection I may go in £250 batches and add two...
However on another trade I may think I can get the same stake on, but will adding my stake in £100 batches.

There’s many benefits for this, being able to get your stakes on without effecting the market and secondly managing your risk much better.
This prevents a lot more bigger losses and makes scratching a trade much easier.

I know your starting small, but when you get the hang of things maybe starting thinking in terms of risk in terms of how your going to apply your stake.

If your staking £10 in a market and that’s your aim, if your quite unsure about the trade, use £2 stakes... you could still get your £10 on but you will also prevent those losses.

When you trade this way... if your breaking up your stakes you can take a lot more losses before that good trade comes along. This doesn’t mean chasing losses though and doubling up after a few losers.

The skill may require you to stake big and confident on two consecutive losing trades in the same market, but staying mindful, that new opportunity you’ve seen is a much smaller stake and Batch.. not doubling or chasing loses, trading this way will also wimake you chase the price aswel because as the price moves, you become more confident so you add more to the trade.
This is not what you want to do however trading this way does make you do that.

Watch Peter Webb’s videos, he trades in batches, but he never chases the price. Have a think about how he’s trading like that and why?

Hope that part makes sense.

Each an every trade needs to be reassessed.

Using the smallest batch and adding slowly to every trade will end up in chasing losses.

Difficult skill to learn but is very achievable.

Mind control is very hard and sometimes I just cannot resist a trade... I think everybody does but if you start with a smaller stake, your in a much safer position. This also keeps you a bit more busier throughout the day. However, even though i sometimes trade when I shouldn’t I am using the very minimal stakes I like to use and sometimes that speculative trade goes ping, ping and your in at full stake with a shed load of profit. But most of the time it’s just one small batch lost and it’s not bother because it’s about 10% of what a normal trading loss is.

I’m very thoughtful today because i had a few stinking losses and although I have a lot of losing trades it’s not very often I get whacked when I’m using a fully committed stake. Usually my losses are minimal and that usually because when your fully committed it’s hard to lose. Usually when you lose your not in second or third gear.

Hope someone who reads this finds this useful and this will apply more to swing trading then scalping
iambic_pentameter
Posts: 443
Joined: Wed May 18, 2016 1:24 pm

OP,

If you are getting a strike rate of 80% as you mention, how long has this been for? And forgive me for asking, but has this been on practice mode or with real money?

This may seem a pointed question but practice mode is vastly different from trading with real money - and, of course, real emotions.

Whilst the automation to stop you going in play is a good thing, what happens before that i.e. you enter a position and the price spikes against you and you are in a position where the profits you made in the previous 3 races are now wiped out by the red screen you find yourself looking at?

The markets are more volatile than they used to be, so it would be prudent to have a number of strategies to deploy depending on what you see in front of you i.e.

A market that lends itself for scalping
A market that lends itself to range based trades
A market that lends itself to swing trading

Best of luck

Iambic
Post Reply

Return to “General discussion”