Higher rate Premium Charge hypothesis

News, chat and debate about the Betfair betting exchange.
Posts: 716
Joined: Tue Jun 30, 2020 3:53 pm
Location: Hampshire, UK

wearthefoxhat wrote:
Mon Nov 30, 2020 8:52 am
goat68 wrote:
Sun Nov 29, 2020 1:45 pm
The reason I ask is because I am absolutely useless at anticipating market direction...hence scalping maybe my thing...
Worth watching this PW video a few times.

Thanks, yes that's a great video.
I must say though very few markets seem to be that stable nowadays, so it seems directional scalping seems to be more relevant on these markets.
Trader Pat
Posts: 1561
Joined: Tue Oct 25, 2016 12:50 pm

jamesedwards wrote:
Sun Nov 29, 2020 8:15 pm
rik wrote:
Sun Nov 29, 2020 1:03 pm

you must have been paying the 20% rate already for a while? are you close to 250k lifetime profit?
try to adjust your strategies or add strategies to generate more commission is better than choosing the 8% base rate imo
if your just generating 2% you definitely havent optimised your profits
I've spent hundreds of hours over the past year trying to find ways to churn more commission and increase my % without success. If you have any ideas feel free to PM me :D

spreadbetting wrote:
Sun Nov 29, 2020 1:07 pm

You'd be wise doing some "what if" type calculations as the last thing you want is to drop in the 60%+ rate but you don't want to pay unneccessary comms either if you don't need to. Remember implied comms is a killer if you win a lot more than you lose , that 8% could easily end up 4%.
Including the impact of implied comms calculation, switching to 8% commission would keep me permanently just above the 5% line that would trigger 60% PC. Increasing commission from 2% to 8% is highly undesirable, but for me the 6% of win markets is a smaller hit than a further 10% hit to weekly profit.

Just wanted to check I have the correct handle on how the higher rates are applied and if this conclusion sounds plausible to the PC experts out there.

This was covered in another thread a while back and I think the general consensus was it was better to stay at 2%.

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