Reinvesting profits

[warren0]

HI all,

Wondered if anyone knew of a way to automate a stake going into a market, with the stake size dependent on the profit gained from another market.

For example a position placed on a your first market with one bot, you profit £X and then a second bot enters that £X into a separate market.

Would that second bot be able to alter the size of the stake dependent on the value gained from the first?

Thanks,
W

[Jukebox]

To do it properly you'd need to invest some time learning to use BA with Excel where you could write as many formulae to calculate bet sizes according to outcomes on other markets and current balance as you have the skill for.

With standard Bet Angel Automation you have options to size your bet relative to your current balance.

[warren0]

Thanks, I was thinking was this an Excel job! Something I'll have to start looking into.

[sa7med]

If you're looking to scale up have a look at the kelly criteria. It will calculate optimal stake level given your bank size. If you bet too much, you will likely lose your bank, even if you have an edge; bet too little and your profits will be paltry. https://en.wikipedia.org/wiki/Kelly_criterion.

So taking that into account, wouldn't it be better to just adjust your staking at intervals rather than on a per bet basis?

[warren0]

It came more from the thought of profiting on one trade, to then have the option to increase the stake on another trade with the worst possible outcome being breaking even across the two trades?

Any thoughts?

Also reference the previous post with Kelly's criteria, many thanks made a great read.

However given the equations' values vary, dependent on the odds and probability of each specific event occurring, you would surely still need to adjust your stake size per trade rather than at intervals, no?

[ShaunWhite]

Kelly requires an expected value calculation for each individual trade and if possible, it's entirely logical. Staking according to the outcome of a previous and unrelated event isn't logical.

When considering staking this way, it's worth thinking about why the #1 trading software doesn't already provide this functionality as standard, without resorting to Excel. If it made any sense at all, it would allow you to do it.

The reason relatively new people often ask for this is that they see the profit from a trade as free money that can be punted on the next trade, rather than it being banked money that needs to be reinvested with the usual due diligence. It's also an issue of recentism, if that money was won a month ago rather than 5 minutes ago, would you really use that result to inform your decision about how to stake an event today?

[warren0]

The thought was more to do with a separate, not unrelated market but I understand your point and has certainly given me food for thought. Interesting idea with the recentism concept more so to do with that attitude towards money maybe, with money recently gained versus saved.

Thanks