Stop Loss question

[betterbet]

Hello everyone,

First of all I'm kind a newbie in this world of trading (just 2 months learning and taking small actions on the field)

I saw a lot of BetAngel videos, and I'm really thinking in purchasing it as it seems to be what I really think to need.

So, I have a really big question on 'Stop LOSS'.
For example, when you are trading in LIVE Horse Racing, sometimes Odds change drastically, how sure can I be, that if the market turns against me, 'Stop Loss, with those 5 seconds delay in-play, will take me out of the market with a MATCHED bet?

Because it seems to me that if I'm having an open position, and the market turns drastically against me, Stop Loss won't have the time (5 seconds delay) to get me out of the market, and will just have that unmatched bet, that will end up in me losing all my stake money Is that right? Or does it make some "chase to the better price on that moment"? Still, even if it does, it can possibly never get one that get matched, isn't it?

Hope not to have made a confusable question, but i'm kinda lost :/

Thank you all that replay!

And sorry for any spelling mistakes I could have made, but English isn't my mother tongue.

[betterbet]

Come on,.. There isn't anyone here that can answer my question??

[Talkbet]

I wouldnt ever try using a stop loss in an in play horse racing market, as you say, the odds are far to jumpy and it'll either get taken for no good reason or the odds will fly past it and it'll never got matched.
As far as I know, a stoploss will only try at the odds it is set at (obviously if better odds are there at the precise moment it places the bet then it gets them), if the odds fly past and the stoploss kicks in but doesnt get matched then it'll just sit there unmatched.

[JollyGreen]

Hi

I think you may struggle to get matched on some occasions especially those where a sudden change in the market occurs. For example, if the the favourite falls in a race then the market will go mental.

You also must factor in the hoovering of money that occurs when on-course punters act on a sudden event much faster than you can.

My advice would be to try using a stop loss where you have a "Stop at 5" together with "Place at 10" as a real emergency back up. I have tried this and it does work on most eventualities - HOWEVER - if you get a catastrophic move then even place at 10 might get missed. Also because of the way Betfair works, your stop at 10 should be matched at 5 ticks or at any tick price up to 10 should there be money available. If it has moved beyond 10 then you may have to manually exit your position.

My experience in these markets (and there are some who may offer better views) is that short distance races are the most dangerous and/or races that are coming to their conclusion. For example, in a shorter flat race where the favourite runs a bad race there is unlikely to be a chance for the market to recover - yes it may but the chance of recovery would be greater on a longer race. In a jumps race, if a favourite falls early there is a chance the market can recover again before the finish. Obviously this is speculative and whilst it may not get you into a perfect trading position it may give you the opportunity to exit with a loss other than the catastrophic loss of your full stake. If that same favourite falls at the penultimate fence then you may find yourself in the deep stuff!

I am sorry if that seems a bit varied but I am not sure what strategy you are employing.

One last thing, when I play in-running I am nearly always laying because any mistake will see the price drift. Also, only one horse can win (excluding dead heats) you should get more chances to exit your position unless you have chosen the winner! It is a dangerous game and your stop loss may not always save you so an acceptance of this risk must be considered before you start.

Good luck, ask away if you want to know anything else.

JG

[betterbet]

Hi everyone,

First of all, thank you very much to Talkbet and JollyGreen for your reply.

I was concerned exactly about that, unfortunatly it is as i thought

JollyGreen, I was thinking in trading pre-LIVE and the beginning of the race, as the prices flutuate a little more. I know that when the race is ending the price move a lot and it's neraly impossible to get something matched.

That's why I was thinking only in trading on the first seconds of the race, do you think is doable? In a race with for example, 2 miles or more, can I rely on the 'stop loss' feature?

I'm really grateful for the support.

Thank you.

[JollyGreen]

In the first part of the race I think you will be okay UNLESS there is a faller and that horse is at the head of the market. However, if it is 2m+ then you would be unlucky to not get a stop loss matched.

It is a dangerous game and requires your appreciation of the risks involved.

It is not an exact science so I cannot say for definite that you will be okay. Use small stakes and try it - perhaps even small stakes in practice mode. At least the latter will help you to define the likely stop loss setting you will require.

HTH

JG