Safety in numbers…
An overlooked strategy on betting exchanges is spreading your risk across a number of selections and / or markets. A lot of people think this involves more risk but I’d actually argue it involves less.
By doing more you increase your chance of a return and minimise the pain of a loss. This is strategy that can be applied in a number of ways but can most commonly be applied across, say, a number of football matches before the start. I will often group matches into batches where I will take a position on 3-5 matches in one go. I’ll be looking for a general characteristic that should deliver a payoff. If I am wrong I can exit one or more positions or cash in on others. You can see a simple example of how to do it here: –
If you pin your risk on one event, one loss could be significant to you and cause you a fair deal of emotional pain. This level of risk is also likely to force your hand. Spreading out the risk may reduce your immediate return, but, if you are following a net positive strategy, then increasing its scope shouldn’t worry you anyhow. In fact, it could get you to a more positive place in double quick time. This is because you will learn quicker and increase your scope in a defined and controlled manner.
I only ever aim to be right more often than I am wrong, I am playing a numbers game. Doing this by putting more through the market across more selections I have found aids me in this process. I’d recommend it.
Category: General, Trading strategies
