Trading on the exchanges. Can anybody answer me this please.

TheEdge949

I am fairly understanding of what is known as scalping. What I don't understand is why do we need to hedge ?

Surely if we have 10 matched back bets at X and 10 matched lay bets at X-1 for level stakes on a single runner then we have a locked in profit.

Why then should we further diminish said profit by hedging the position as presumably we have no exposure to the market?

Or is my thinking flawed?

Experts I await edification, education and gratification.

Mark

misterpj

Mark
The Goose that was laying the Golden Eggs, was Flutter into Betfair 2000-2010
when Betfair were effectively seeking crowd funding, in a 'portacabin' Andy Black Ed Wray, mainstream bookmakers, were going Apoplectic, except one class proper bookmaker
Victor Chandler, himself, said to the press, I only wish I had thought of it!
Then Victor always, been shrewd, why he employed Tony lizard Bloom, in Gib, as a trader.

Often wondered, if Victor has a private piece of StarLizard, Tony's firm, Camden
Would love to be wrong, 'the machine' can't ever go back, to what it got to, remember when they floated, went blue chip.

The Commissions, the premium charges, the bet matching Algorithms, all vastly different now, too 11(21,20,19,18,17,16,15,14,13.. years ago)
And, the massive thing, the Volumes, although OK, not what they were, top of market, then the Purple Chaps got involved as well.

By scalping, I assume your scalping, is (was) my tick trading
Once upon a time, it was like shelling peas, getting an all green book, any horse race, any graded dog race. And, you didn't need, Gruss, or bespoke ladder software, eventually you did.

Makes me laugh (not getting into poker bots)! never had one (lol) wouldn't want one, but, anyone who says they don't exist, in Walter Mitty land.
In 2003,I know, because.. (will keep private)..
In 2003 a custom built cutting edge 'BOT' the full and best package, the whole shooting match, hardware software a fully sourced brand new bespoke full kit, no change out of £40,000, that was a full on 24-7 trading BOT, and, don't think they don't go wrong!
One of the best, true, real BOT gone wrong tales, on Betfair
When, the BOT owner, didn't realise, teams out of champions league, dropped into europa league, and said individual & BOT, did their absolutes, auto trading the europa league OUTRIGHT market, scalping, 103,104,105% not realising a clutch of top teams, not even in the betting, and of course, would enter the completion, and the market, and the BOTS auto scalping book, did its absolutes, and it wasn't for an hour, or a few hours, the BOT like ARISTON, it went on and on and on

I am calling, 1.01 to 1.02 one tick, (scalp) and 5 (4-1) to 7 (6-1) 200 ticks (scalps)
If? you know, any judges, that can simply gaurentee a 200 tick movement, either way, on UK gee gees, I gaurentee, I could make, you, me a gaurenteed huge long term chunk.

No fancy pcs fancy software required.
Best wishes, hope you and family doing ok

Nearly forgot, your good pals with TK, get him to ask Tony Bloom direct, how many millions and millions he invested, in the best of the best cutting edge software, for trading football, how he, a very very clever fella, made multi multi millions.

misterpj

Mark, scalping Xchange too Xchange, was an angle that worked😏

misterpj

But Mr Mark
because it is You
because, doing it again, would never ever interest me, ever.

Here, is your 2021 Golden Goose
If you want SCALPING HEAVEN, legally,...
Only can happen, if the World ever, go back normal, and you need, a two person team, of equal intelligence and total implicit trust, one sits UK with best tinternet (private not public) commercial grade Internet, other travels Europe, court siding live tennis, and your scalping Heaven, courtsiding live tennis, betting each individual game, in running, ti's like your own monies printing machine😏

rabdeniro

I used to do scalping years ago, it's really volitile and you need a lot of money to make decent money, I found hedging a way to guarantee a small profit.

TheEdge949

Ok Paul. thank you for the responses.

Yes scalping or tick trading is something that I am doing on a very limited basis as I learn.

Exchange to Exchange can be profitable although I prefer to use ex to ex for arbing as unlike regular bookies you wont get accounts limited or closed as on the exchanges they only make money when you win, so whilst they don't particularly like it they tolerate it and take their commission.

Thats also what make the exchanges great for matched betting, again it isn't their money so they don't care. In fact you only seem to fall foul if you use the exchange to data mine and dont place any volume through.

Tried Geeks Toy software but found that the system requires multi 28" screens to really be useful.

Will try Bet Angel instead and see if its any better. If not I'll do it manually.

Still like to know why we should hedge what is ostensibly a closed position.

TheEdge949

rabdeniro said:

I used to do scalping years ago, it's really volitile and you need a lot of money to make decent money, I found hedging a way to guarantee a small profit.

So if we hedge are we allowing the system to automatically place trades to guarantee a profit across the market.

I'm confused

rabdeniro

I used to use Bet Angel you can get a simple version for free, their videos are really useful, Caan Berry videos are also good, you can hedge automatically or manually.

TheEdge949

Thanks Rab I tried the Geek Toy that Caan uses but as I said I found it difficult to set it up.

People have said that Bet Angel might be better for me and although its the most expensive the fact that Peter Webb has a vested interest means I may get answers to problems more readily.

rabdeniro

If I was scalping on horse racing I would jump in and out and hopefully it would get there or I would set the app to greening ( hedging ) and once it got to a certain price it would cash out for you for a small profit,
In the example below if hedging your guaranteed money back whatever the result.