Help with some Maths

[49ers]

Hello,

I just wondered if anyone could help me? I struggle a bit with maths and I'm trying to work out a formula to weight tick movement equivalently at different prices (similar to the bookmaking function in BA).

For example if there are runners trading at odds of:

Fav - 2.52
2nd - 3.75
3rd - 4.8
4th - 6.6
5th - 22

I'm trying to work out say if the Fav moved in 5 ticks what the quivalent movement would be for the different runners to acheive the same result to the book %.

So if Fav moved in 5 ticks the 2nd runner may have to move in 6, 3rd - 7 4th - 10 and 5th runner may have to move in 30 ticks to achieve the same effect on the book (due to difference in odds, tick size and IP) - I'm trying to work this out so that I can apply a consistent strength rating across runners for the overall market when they move up and down from support and resistance levels.

Any help would be greatly appreciated.

Many thanks!

[sa7med]

Hi,

Just convert to percentages and then convert back.

So if movement from 3.1 to 3.5 is 32.25% to 28.6% (diff of 3.64)
so other runner that is 5.0 (20%) would move to (23.65%) or for odds the inverse 100/23.65 ~ 4.25. That is assuming the entire move is 100% translated one runner. I think that's right. Someone will correct me if im wrong.

[Euler]

See: -

https://youtu.be/1oPM-Xgm2XA

[49ers]

Thanks for your reply

So if movement from 3.1 to 3.5 is 32.25% to 28.6% (diff of 3.64)
so other runner that is 5.0 (20%) would move to (23.65%) or for odds the inverse 100/23.65 ~ 4.25.

So for the runner to move from 3.1 to 3.5 (8 ticks) this would be the equivalent to the runner at 5.0 moving to 4.3/4.2 to have the same effect on the market.

Have I understood this correclty?

[49ers]

Hi,

Thanks for the reply

See: -

https://youtu.be/1oPM-Xgm2XA

This is excatly the video I was watching to try and work out the odds movement and am looking to replicate but I was unsure of the maths to put this into my excel sheet.

[sa7med]

Thanks for your reply

So if movement from 3.1 to 3.5 is 32.25% to 28.6% (diff of 3.64)
so other runner that is 5.0 (20%) would move to (23.65%) or for odds the inverse 100/23.65 ~ 4.25.

So for the runner to move from 3.1 to 3.5 (8 ticks) this would be the equivalent to the runner at 5.0 moving to 4.3/4.2 to have the same effect on the market.

Have I understood this correclty?

Yes, assuming only two runners or 100% correlation with runners. Obviously in practice this isn't really the case as other runners may drift if one runner is coming in. So you could split the move (3.65%) on the other runners, either equally or weighted.

[49ers]

Perfect!

Many, many thanks