Hello,
yesterday I traded the German Grand Prix of Formula 1. As mentioned earlier I focused on the Fastest Lap market. I only used a liability of 10€, because I am new at trading Formula 1, so I want to get a feeling for the market:
Could be more profit, but I closed the trade as soon as possible.
No tennis trading in the last few days, but today starts 2008 Rogers Cup in Toronto. It is not the best time to trade tennis if you are living in Europe, but I hope I can enter some matches.
That's it for now.
All the best with trading!
Cheers, Loocie
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4 comments:
That’s decent return for a 10 euro stake, what did you do? Back/lay one driver or keep dipping in the market?
Hi John,
thank you very much for leaving a comment.
I watched the first few laps and backed Hamilton 10€@2.7.
He was leading with 2 or 3 seconds and was not involved in defending his position or something else, so he could concentrate on the track. I watched the times via Formula1.com live timing and saw that there was a high probability for Hamilton to hold the fastest lap. Later I layed Hamilton 10€@2.1 and had 6€ if Hamilton would have fastest lap or nothing if not.
When Heidfeld was close to the fastest lap I made it each way, so I layed Hamilton 4.64€@1.29.
Generally I think it is possible to trade this market with stakes of 50€, so there is a good possibility of making decent profits.
I read your blog regularly, it is always a good read. It is also nice to see you had a good trading weekend.
Cheers, Loocie
You will find as you increase your stakes in this market it becomes a lot more risky. Unless you’re trading one of the top runners the liquidity is usually very poor and can sometimes be hard to trade out of positions. For example when Heidfeld set the fastest lap it would have been easy to get a decent amount backed on him, but once he’s set that fastest lap the liquidity vanishes. You end up with a great bet on a runner who’s currently holding the fastest lap - which for some reason very few people want to back at short odds because they don’t believe he will hold on to it – whereas with the top runners people believe they will hold onto the fastest lap and are happy to take the shorter odds so you can make the trade. I therefore use smaller stakes on the lower runners than the top drivers, which works out OK in the end because they are higher odds so you end up with about the same profit!
You are right. I recognized these situation during this GP too.
I did not back Heidfeld when he was near the fastest lap, because I did not want to risk the money I earned with Hamilton. I am at the beginning of trading this market, so I need to catch up some confidence. Thank you very much for the advice. I will keep that in my mind for the next grand prix.
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