, James the 1st or Euler can you shed some light on portfolio position size at allAm i over streching myself???
I do mostly pre race trading and over the 4 years i have a great strategy, and get out plans etc that work well for me, but i feel i may be over stretching myself. I have asked this question on many occasion and other forums, although am making consistant profits and have the odd bad day or two i open my total portfolio up to a max 40% (when trading an odds on shot) but my stop loss risk is 1%, but i dont feel comfatable doing it. I saw on a centaur notice that out of a £10,0000 portfolio they only position a trade up to a maximum of 1.25% , James the 1st or Euler can you shed some light on portfolio position size at all
, James the 1st or Euler can you shed some light on portfolio position size at all-
spreadbetting
- Posts: 3140
- Joined: Sun Jan 31, 2010 8:06 pm
I wouldn't take too much notice of what failed sports investment fund Centaur did 
If you read back thru your posts you'll probably see you've answered your own question, especially if you don't feel comfortable doing something. You've a 'great strategy' and been doing it for over 4 years I'm guessing successfully, you must realise by now your profitability doesn't rest on those odd occasions you're exposing yourself to a large % of your 'portfolio'.
Personally I've never really gone with this portfolio stuff , if you're doing this full time you've generally got a lot more squirreled away than what's in your account balance. If things go tits up it's usually just a case of depositing more or if working just a case of saving up a new bank.
If you read back thru your posts you'll probably see you've answered your own question, especially if you don't feel comfortable doing something. You've a 'great strategy' and been doing it for over 4 years I'm guessing successfully, you must realise by now your profitability doesn't rest on those odd occasions you're exposing yourself to a large % of your 'portfolio'.
Personally I've never really gone with this portfolio stuff , if you're doing this full time you've generally got a lot more squirreled away than what's in your account balance. If things go tits up it's usually just a case of depositing more or if working just a case of saving up a new bank.
Many thanks for your advice Sb i havnt been sucsessful over the 4 years thou but i think the fact with me isnt the exposure on a odds on favourite its the fact that BF closing its doors on us when we have open onesspreadbetting wrote:I wouldn't take too much notice of what failed sports investment fund Centaur did
If you read back thru your posts you'll probably see you've answered your own question, especially if you don't feel comfortable doing something. You've a 'great strategy' and been doing it for over 4 years I'm guessing successfully, you must realise by now your profitability doesn't rest on those odd occasions you're exposing yourself to a large % of your 'portfolio'.
Personally I've never really gone with this portfolio stuff , if you're doing this full time you've generally got a lot more squirreled away than what's in your account balance. If things go tits up it's usually just a case of depositing more or if working just a case of saving up a new bank.
When I trade I never consider all my capital at risk, which is it of course because Betfair could crash. But I tend to have sufficient ROI to not worry about that.
So I commit as much of my bank to trading pre off on horse racing. In-play is different though, but it's all about the mean return time of losses. You could easily have a decent strategy but blow your bank because you just hit a run of bad luck.
On my most aggressive strategy I worked out that a stake of 2% of my bank would allow me to avoid pretty much any chance of going bust. But that depends on the upside delivering against the same as it did in the past, so I monitor that constantly.
So I commit as much of my bank to trading pre off on horse racing. In-play is different though, but it's all about the mean return time of losses. You could easily have a decent strategy but blow your bank because you just hit a run of bad luck.
On my most aggressive strategy I worked out that a stake of 2% of my bank would allow me to avoid pretty much any chance of going bust. But that depends on the upside delivering against the same as it did in the past, so I monitor that constantly.
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steven1976
- Posts: 1744
- Joined: Tue Jan 19, 2010 6:28 am
"On my most aggressive strategy I worked out that a stake of 2% of my bank would allow me to avoid pretty much any chance of going bust."
You must have more than barclays in your account because even I put the occasional 5K order into the market! Is this just for inplay you would use 2%?
You must have more than barclays in your account because even I put the occasional 5K order into the market! Is this just for inplay you would use 2%?
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steven1976
- Posts: 1744
- Joined: Tue Jan 19, 2010 6:28 am
For pre horse racing Im comfortable using 20% of my bank that I allow for scalping on the horses. I have my opening trade and then I have another 2 positions in the market at the same time that allows me to cut out and be in a good position for the next trade. So I guess at anyone time I could be exposed to 40% but the second I get on the wrong side Im out.
For inplay football I use a slightly bigger bank and use about 5%. I tend to back to lay on footy offering to the market and if a goal goes against me I always sell out. I use to struggle doing this but a friend of mine who does quite well on football taught me the importance of taking the loss even if its most of the stake.
For inplay football I use a slightly bigger bank and use about 5%. I tend to back to lay on footy offering to the market and if a goal goes against me I always sell out. I use to struggle doing this but a friend of mine who does quite well on football taught me the importance of taking the loss even if its most of the stake.
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steven1976
- Posts: 1744
- Joined: Tue Jan 19, 2010 6:28 am
I only play with a very small bank on the horses for a bit of fun in the evenings. If it went down its hardly worth worrying about. I just enjoy getting stuck in at the front of the prerace markets. My contingency plan is the day job!
I think after reading again Peters 2% is for inplay but for preoff he is willing to commit as much of his bank as needed.
A friend of mine uses 100k bank (not horses) and he can be exposed by 50% of that at any time. Obviously it all depends on the situation and time scale of events. For me I dont see the point for example of having 100k in a bf account if its not there to be used. if your only ever wanting to expose yourself to 5k then keep the other 95k in a saving account or an investment to make money and if bf crashes and you lose say 5k or 5% of your 100k then take it out of your 95k that has been sat in your own bank rather than betfairs. If you play with a 5k bank but only willing to expose for 500 quid of that then keep the other 4500 tucked away. I know you could be involved in multiple marketa at one time but hope you get my reasoning.
I think after reading again Peters 2% is for inplay but for preoff he is willing to commit as much of his bank as needed.
A friend of mine uses 100k bank (not horses) and he can be exposed by 50% of that at any time. Obviously it all depends on the situation and time scale of events. For me I dont see the point for example of having 100k in a bf account if its not there to be used. if your only ever wanting to expose yourself to 5k then keep the other 95k in a saving account or an investment to make money and if bf crashes and you lose say 5k or 5% of your 100k then take it out of your 95k that has been sat in your own bank rather than betfairs. If you play with a 5k bank but only willing to expose for 500 quid of that then keep the other 4500 tucked away. I know you could be involved in multiple marketa at one time but hope you get my reasoning.