Scalping is a straightforward betting strategy that relies on seizing minutes, fleeting price shifts and differences across betting exchanges like the Betfair Exchange. By taking advantage of the variations in the odds that are offered, this strategy enables the bettor to generate modest but regular gains across a variety of markets. The method of making tiny earnings with a minimal amount of risk by taking advantage of minor, short-term price swings in the Exchange market is known as scalping.
What is Scalping and How Does It Work?
Scalping is the art of taking advantage of short-term price changes in a betting market to make relatively tiny profits. Even though the earnings are modest, it is easy to execute a large number of deals quickly.
With the correct software, it is relatively simple to perform this about 25 times on any given day, even if you just make £4 profit on each deal.
When calculating their approach, different traders using various methods can draw on their individual experience, expertise, and personality. Typically, investors hold positions open for a number of days, weeks, months, or even years. A trader leaves positions open for several hours, days, and perhaps even weeks. Conversely, some scalpers only occasionally hold onto their positions for a few minutes or perhaps just a few seconds when it comes to one-tick scalping.
The key to scalping success is selecting the right market. Scalping works well in markets with high volume and rapid movement. Typically, the weekend is this. Scalpers like to target the horse racing industry.
We would place a back and a lay bet on the same horse in horse racing. This indicates that we are placing bets on whether the horse will win and whether it won’t. This may sound absurd, but not when you consider the wildly variable odds.
It makes no difference whether you place your lay or back bet initially. Making ensuring you are providing a price is crucial. We can sell the wager back to the market at a profit once this price is met. Typically, the difference between backing at 3.25 and laying at 3.20 is usually just 1-5 tocks. Scalping is all about predicting rapid movements in price in a market.
The Best Way to Begin Scalping on Betfair
Choosing the right market for you is the first thing to do. Horse racing is the most popular option, but scalping is possible with nearly every sport on Betfair. Before making any significant bets, it is best to become familiar with the market you are trading in.
When you first start out, it makes sense to just keep an eye on how the odds change before and throughout an event. This will help you determine how much you can risk without running the risk of losing a lot of money and when it is ideal to put your bets.
You have the option of buying scalping software and paying a monthly or yearly price to use it. This is typically a good idea, and later on, in this tutorial, we will talk about different kinds of software and their relative benefits and drawbacks.
Pre-event and In-event Betting Strategies for Betfair Scalping
Scalping has benefits and drawbacks, whether it occurs before an event or during play. The strategy of scalping in-play is more high-risk and high-reward. You can determine this for yourself by tracking how the chances change throughout an event. During the event, there is a lot more variation than there was before.
When compared to before the event, fluctuations tend to be “bouncier” during the event.
A change in odds before an event is frequently caused by a relatively quantifiable occurrence, such as an injury to one of the horses prior to a horse race. This information will cause the chances to change, finally settling at the new value.
Scalping before an event can be beneficial if you have a thorough understanding of horse racing and the ability to rapidly capitalize on the news about a race before it begins.
However, markets are typically lower before an event and get bigger as the event’s start gets closer.
The majority of wagers are placed right before a race, which results in fresh changes to the odds. Many scalpers decide to place their wagers at this moment.
Scalping during a performance is riskier. In horse racing, you run the danger of losing your entire stake if a horse you just bet on falls at the next hurdle before you can realize a profit.
It is advisable to abide by a few regulations if you plan to scalp during a horse race. For example, you should only scalp during races that are longer than 1.2 miles, scalp just one horse each race, and only between hurdles if the race also includes jumps. This should lessen the likelihood that a tragic accident results in you losing your stake.
What Kind of Profit Can We Expect From Scalping on Betfair?
Keep your stakes low when you first start scalping to prevent making costly errors. However, you can continuously turn a respectable profit if you get more self-assurance.
It is possible to make between £3-4 for each race if you choose a good, busy day to the scalp, such as a Saturday. Your daily profit at this point can be up to £120 if you spread this out over 25-30 events each day.
When you feel extremely confident, you can up the stakes. Although the danger is obviously greater, doing so gives you the opportunity to earn much more money. In order to reduce their risk, many scalpers accept earnings of less than £5 per race.
Secrets of Scalping on Betfair
If you have the same level of expertise and resources as the best traders, you can undoubtedly succeed financially. However, compared to your current work, the time and money commitment can be lower.
Trading on Betfair is a zero-sum game, therefore every winner needs the assistance of a loser. The goal of top scalpers is to scalp you so they can trade with more liquidity. Moreover, it’s possible that they will steal your money from you.
Additionally, not all scalpers are made equally. The best scalpers can outwit their rivals because they have quick contacts. A single market can only be traded at once. Consequently, it is more advantageous to trade all markets simultaneously with bots utilizing algorithmic trading tactics.
Scalping requires a lot of work but offers nothing in terms of time, technology, etc. If you want to get a better return on your investment, you’ll need to uncover scalable wealth-building tactics.
Of course, sitting in front of your computer and trading one sector at a time is not scalable. Use of bots that trade all markets concurrently and do away with scalping is required while scaling up your firm.
Three Tips to Improve Your Scalping
There are a few straightforward pointers for newcomers to horse racing that can be useful when you’re just getting started. Other sports can benefit from this advice as well.
- Never go after quick cash. It is simple to become envious when things go your way. Always consider the long term, and when possible, take your tiny earnings. A guaranteed profit, no matter how modest, is always preferable to high-risk gaming. If you want to gamble for entertainment purposes, you can take risks, but if you are serious about using scalping to make money, minimizing any risk is essential.
- Choose a market. The market you choose could spell the difference between success and failure for you. You need a very liquid market with a lot of trading activity for scalping to be successful. Selecting a low-key event can reduce your winnings to as few as two or three bad wagers.
- Begin modestly. It makes sense to start with low stakes when you first begin scalping. To start, only choose the markets with the lowest odds and the greatest liquidity so you can gain confidence.
Mistakes to avoid while scalping
It’s simple to lose sight of the fact that you’re losing money when you’re actively scalping. Your triumph will be effectively distracted by the commotion of the markets and the roar of the crowd.
The most frequent error made by traders at all levels is scaling under pressure. You’ll see that this problem continues coming up if you browse some scalping forums or chat rooms. Even some of the most accomplished scalpers admit to occasionally scalping under duress.
You should always scalp in a quiet, distraction-free environment because of this. Don’t consider scalping to be your main source of money unless you’ve been doing it successfully for a few years.
Additionally, cease limiting the time spans to the absolute minimum. You will be informed of significant price ranges and pricing patterns that the lower time frames alone cannot reveal by looking at the higher time frame charts. Moreover, pay attention to the news. Scalpers may think they don’t need to follow the news.