Matched betting to Betfair trading – Key differences and opportunities


so there’s actually quite a strong link
between matched betting and trading and you may be interested to know that
effectively although it wasn’t called it then match betting was where I started
my trading career on bed fare please like and comment on the video below that
will allow me to produce better quality videos and more of them in the future so
yeah if you were to transport yourself in a time machine and go right back to
my very first few bets that I ever placed on a betting exchange they were
effectively matched bets what I was doing was going to bookmakers they
didn’t tend to do many offers back then and of course they do now which is why
the whole match betting community has grown from there but I would go to a
bookmaker preferably an obscure one get really good odds off of them on a
certain event and then I would go onto the exchange and lay it off on there now
in the very early days of the exchange people were just putting up odds left
right and center so people didn’t really know the true value and if he just did a
little bit of work it was quite possible that you could actually back at a
bookmaker up on the exchange and get your profit straight away it was that
easy it was the proverbial printing of money
back in in those early days however it wasn’t quite that because there was no
money there so you couldn’t do on any particular scale it was a quid or two
here and there and a couple of quid a tenner or whatever and very small
margins but very soon quite a few people started doing that so the opportunity
just to ARB immediately started to fall absolutely out of the mix and that’s
what what I was doing I recognised arbitrage from other markets and the
technical and synthetic arbitrage and outright bobbing and so on and so forth
and that was the very first thing that I did on exchanges I’ll just go to all the
bookmakers find the best as possible and then lay it off on the exchange or try
and are Boff position on the exchange but as with all things like that you
know the low-hanging fruit goes very quickly and suddenly it was getting
quite competitive to be able to be able to do that so I just advanced
– my strategy a notch up and basically I would go and get the decent odds from a
bookmaker and then I would just offer the position up on the exchange so I’d
basically say okay what but you know I’m gonna back something at fifteen I want
to lay something at fourteen in order to make a bit of money so I would just go
into the exchange and put the position on the exchange at the price at which I
wanted that’s one of the beautiful benefits of the exchanges is if the
price doesn’t exist you ask for it so that could be just a one ticket or it
could be a few away and as the market wobbles your order gets filled so that’s
what I started doing then I went from standard are being or much betting as
people would recognize it nowadays to offering a price on the exchange in a
profitable position but I was still going around bookmakers searching for
little opportunities wherever I could find them to put onto the exchange so I
was effectively a liquidity provided to the exchange and I cannot pretty much
still out so yeah I was doing that for a while and then one morning I just woke
up and you know I was spending a lot of time going to bookmakers to get offers
to understand you know what price I should be putting on the exchange and I
just woke up one morning and thought why don’t I put both bets on the exchange
and I thought wow it’s ridiculous it’s that could never work it could never be
that simple there’s no way you know why why would somebody back at a worse price
than they could lay out and why would somebody later worst price they could
back out bla bla bla you know why would why would that happen
but the simple fact is that day I went on to the exchange and I put one order
at higher odds than the lay order and then just sat and waited and then
magically both of those positions got matched and it was like wow and it was
that point at which the penny dropped and I suddenly realized in fact what I
really should be doing and you know things accelerated from there that was
the moment that was the the pivot point at which I went from just doing it sort
of you know messing around sort of you know hobby type style to suddenly
realise thing that I could do something a lot bigger and you know let’s start
pushing the boundaries and trying to figure out where we can go with this and
that is how trading was born because I figured out that if I just put
two positions on the exchange and waited for them to get matched then you you
evolved the strategy from there a lot of them were getting matched immediately
anywhere I knew nothing about racing but by putting two positions on to the
exchange suddenly I was getting matched and you know you said anything all hold
on a second I’ve discovered something here I’m doing something a bit different
but then very quickly of course you evolve you strategy so over the many
many years you know when I first started it was let’s just put two positions into
the market now it’s a lot more complicated than that and there’s a lot
more thought and depth that goes into it so I’m anticipating and understand the
way to micro anyway it’s a lot more detailed and complex than it ever was
but that’s a function of scale because if to go from here to a much much larger
numbers you have to start thinking outside the box sorry to use that word
but it’s true you have to start thinking about clever all ways of doing things
and how can you put more money through and you know is there more than one way
in which you can do stuff and so on and so forth but there’s an important
distinction here because I got a message this week from somebody saying I’m
really interested in trading I’ve been matched betting freighters have built up
a bit of a bank but my concern with trading is that it seems to involve risk
and that is the big difference between match betting which is pretty much risk
free or very low risk and trading when you’re actively trading you’re putting
yourself in a position that could potentially profit but you could also
potentially lose money and it’s the balance between those profits and losses
that really matter so in the very very early days of my Betfair career I was
are being I was effectively doing matched betting but in order to be able
to grow and put through larger amounts of money then you start taking positions
in advance of them getting matched and essentially that’s what trading is
you’re putting one position in the market you’re taking a view on what’s
going to happen to the odds and then you’re putting your closing position in
at a point a little bit further up or somewhere else within the market and by
doing that that’s how you affect of lis trade but you also have to accept that
there is an element of risk within that but one of the things that stops people
from trading being effective traders is the inability
to take risk or the taking too much risk so you have to get that balance and
trading and profiting from trading is effectively a balance of all of your
profits all of your losses and just making sure that your profits are
slightly bigger than your losses and you can do that in a number of ways a
strategy can help you achieve that or selecting a certain type of market so
you have a strategy that you want to deploy you test and it generally works
and then you start refining it by looking at individual selections within
the market so if you have a strategy that generally works but you plaster
across 20 football matches all those twenty football matches are very
different but some of them will work and some of them won’t so if you have a
strategy it’s applying it to a certain market or a certain selection or a
certain toss a certain tennis player that creates the trading profitability
just doing a generic strategy generically across generic markets in a
generic way produces generic results which is generally breakeven so part of
the trading process which is very different from match betting is
anticipating roughly where the odds are going to go or putting yourself in the
potential to profit without too much downside so yeah trading is very
different from matched betting but effectively trading evolved out of that
model out of the are being stroke matched betting model that was around
and is still around but it’s a very sort of different kettle of fish in terms of
the amount of risk that you have to take in order to get a profit and also the
way that you actually manage that is slightly different probably to what
you’ve been used to as well but yeah effectively the two are sort of joined
at the hip in terms of what they’re trying to achieve they achieve the same
thing in terms of the result that you get at the end of that particular
process but they’re just achieved in slightly different ways but of course
you know the markets on Betfair the racing markets turn over about ten
billion a year so one of the big advantages of trading that you don’t get
with match betting is the scale of it is much much bigger anyhow I hope that
that’s giving you a bit of insight into where I started and you know my path was
were going from match betting strike arbitrage towards trading and I imagine
a lot of people also along that path but they are very distinct in terms of the
way they likely to achieve it and with trading
you’re going to have to take some risk and you are going to have to take some
losses as well in order to be able to trade profitably but hopefully that’s
given you an oversight of that path that process and where the differences are
between match betting and trading you

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11 thoughts on “Matched betting to Betfair trading – Key differences and opportunities

  1. Matched betting has been destroyed over the past year or so by affiliates promoting Profitaccumulator, Oddsmonkey and Profitsquirrel all over the place – way too many people doing it now. I've noticed the same offers from last year (4mm and acca insurance offers) downsized considerably along with gubbings ever so likely. Shame really

  2. Sorry to go off the subject of this video but after watching your video on
    Psychology of trading – Why traders fail I want to tell you I have started to compile a a little story about Jackal and Hyde why one side of me say.s it is crap and the other say’s that I can make a profit if you would like to read it I will send it to you. But going back to your video Psychology of trading – Why traders fail It is not fear with me it is NOT knowing what I am doing wrong I have made some great trades but lost it all about £200.00 in all only using £2.00 stakes Where am I going wrong?

  3. Great video, I am matched betting still at the moment but I am very interested in learning the in's and out's of trading, do you know any great resources where I can learn?

  4. Hey! I'm playing arbs too but i don't really understand what do you mean with ''exchange'' and ''trading bets''. I checked on your videos but i have to admit that you have quite a lot and probably would take me a few months to find out the answer to this question. What are you calling ''exchange'' and ''trading''??

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