Being undercut by bots (I think?)

[Chumtastic]

Hi,

Wondering if someone can help me. I've designed a model but by and large, the market is illiquid up until about an hour before the game starts. When I try and provide liquid for bettors or arbers on the back or lay side, for say £100, I'm constantly undercut by what seems to be a bot putting £2-£5 up or below me (depending on what I'm doing). Are these casual users from here or seeding from Bfex directly?

Should stress, the more the selection has traded on it the less likely I am to be undercut, but wondering what I can do to avoid this.

Thank you

[Dallas]

It'll just be a bot (or several bots) designed to continually offer bets at the best price

There's an example in the form of a servant which does exactly that (providing the spread remains large enough) available to download from the Servants section
viewtopic.php?t=23094

[Chumtastic]

Thanks Dallas; I'll give it a read but forgive my ignorance but what value do these bots obtain.

Say I make fair price 2.8, and offer a lay up at say 2.76, they effective offer 1 tick up to 2.78. They're getting negative/neutral (no value) in this scenario, once you factor commision?

Obviously I'm looking for bigger gaps in fair and the price I'm offering but just for illustrative purposes.

[Dallas]

Thanks Dallas; I'll give it a read but forgive my ignorance but what value do these bots obtain.

Say I make fair price 2.8, and offer a lay up at say 2.76, they effective offer 1 tick up to 2.78. They're getting negative/neutral (no value) in this scenario, once you factor commision?

Obviously I'm looking for bigger gaps in fair and the price I'm offering but just for illustrative purposes.

Value is subjective so someone else may feel laying at 2.82 is still value, in which case the bot will continue to jump back in until that person no longer feels its value for them
They may also be trying to close a profitable (or losing) position or doing any number of other things.

People sometimes even try to trick bots into offering a favourable price they can take on the other side, so in your scenario offer a lay at 2.88 then when they jump in at 2.90 snap it up with a back bet which should now be very good value for you

There's little point in trying to guess the reason why a bet is placed, just try to find a way to exploit it if you can

[Chumtastic]

Thanks Dallas, really appreciate your insight.

I think I need to find a way to integrate my model into BA automation now

[Euler]

It's not impossible that it could be cross-matching: -

https://youtu.be/PMB0VV1HiPg

Worth understanding that, depending upon when you're active and in the market and in what type of market